# In the matter of Taurus Exports Pvt. Ltd.

> NCLT judgment dated 2024-02-29. Citation: TCN-2024-NCLT-02315. The case involves an application (IA No. 502/JPR/2023) filed by the liquidator of M/s Taurus…

- **Court:** NCLT
- **Order date:** 29 Feb 2024
- **Citation:** TCN-2024-NCLT-02315
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/taurus-exports-pvt-ltd-79bd43c7

## Summary

### Background

The case involves an application (IA No. 502/JPR/2023) filed by the liquidator of M/s Taurus Exports Pvt. Ltd. ('Corporate Debtor') under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The application seeks to vacate an order dated 13.02.2019 passed by the Income Tax Department, which created a lien on the Corporate Debtor's bank accounts and fixed deposits. The Adjudicating Authority had admitted the application filed by Uniword Telecom Limited ('Operational Creditor') under Section 9 of the Code for initiating Corporate Insolvency Resolution Process ('CIRP') against the Corporate Debtor on 05.03.2020. Mr. Anoop Bhatia was appointed as the Interim Resolution Professional ('IRP') and later as the Resolution Professional ('RP'). Subsequently, a liquidation

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## Facts

Uniword Telecom Ltd. initiated CIRP against M/s Taurus Exports Pvt. Ltd. The Adjudicating Authority admitted the application on 05.03.2020 and appointed Mr. Anoop Bhatia as IRP, later RP, and finally as Liquidator after the liquidation order on 18.02.2021. The Corporate Debtor had assets including investments in Panache Holdings Pvt. Ltd., cash balance, and a fixed deposit of Rs. 1,37,007/- in ICICI Bank. The Income Tax Department had created a lien on the Corporate Debtor's bank accounts and fixed deposits vide order dated 13.02.2019 for Rs. 97,67,513/-. The Liquidator sought to remove the lien and close the bank accounts. ICICI Bank refused to close the account due to the lien. Axis Bank and Union Bank of India were also approached for closure of accounts. The Income

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## Issues and analysis

### Issue 1: Whether the lien created by the Income Tax Department on the Corporate Debtor's bank accounts and …

**Ratio:** Section 238 of the IBC stipulates that the Code has an overriding effect over all other

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**Reasoning:** The Adjudicating Authority reasoned that the continuation of the lien by the Income Tax

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**Interpretation:** Section 238 of the IBC is interpreted to mean that the provisions of the Code

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**Application:** The ratio and reasoning are applied to the facts of the case to conclude that

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## Parties

- **Judges:** Deep Chandr…; RAJEEV ME…
- **Appellants:** Anoop B…
- **Respondents:** M/S TAURUS…; Office of the…

## Timeline

- **2019-02-13 — Income Tax Department…**: Income Tax Department passed an order creating a lien on the Corporate Debtor's bank…
- **2020-03-05 — CIRP Init…**: The Adjudicating Authority admitted the application filed by Uniword Telecom Limited for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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