# In the matter of Transparent Energy System Private Limited

> NCLT judgment dated 2023-10-17. Citation: TCN-2023-NCLT-01173. This is an application (I.A. 324 of 2021) filed by the Resolution Professional, Mr. Vijendra…

- **Court:** NCLT
- **Order date:** 17 Oct 2023
- **Citation:** TCN-2023-NCLT-01173
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/transparent-energy-system-private-limited-9ee01cfa

## Summary

### Background

This is an application (I.A. 324 of 2021) filed by the Resolution Professional, Mr. Vijendra Kumar Jain, appointed to conduct the Corporate Insolvency Resolution Process (CIRP) for Transparent Energy Systems Private Limited (Corporate Debtor). The Resolution Professional seeks directions to withdraw a notice issued by the Income Tax Officer TDS-3 under Section 226(3) of the Income Tax Act, 1961, to HDFC Bank, Bhandarkar Road, Pune, freezing the Corporate Debtor's bank account. The CIRP commenced on March 8, 2019. The applicant also seeks permission to operate the said account.

## Facts

The Resolution Professional, Mr. Vijendra Kumar Jain, filed an application (I.A. 324 of 2021) seeking the defreezing of the bank account of the Corporate Debtor, Transparent Energy Systems Private Limited. The CIRP commenced on March 8, 2019. The Income Tax Officer TDS-3, Pune, had issued a notice under Section 226(3) of the Income Tax Act, 1961, to HDFC Bank, Bhandarkar Road, Pune, freezing the Corporate Debtor's bank account due to outstanding tax dues of Rs. 7,26,424/-. The Resolution Professional argued that the attachment of the bank account should be withdrawn due to the moratorium imposed upon the commencement of the CIRP. The applicant also stated that the respondent was informed about the commencement of moratorium in the case of Corporate Debtor from

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## Issues and analysis

### Issue 1: Whether the attachment of the Corporate Debtor's bank account by the Income Tax Department under …

**Ratio:** Upon the commencement of the Corporate Insolvency Resolution Process, the security

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**Reasoning:** The court reasoned that the attachment over the bank account cannot survive after the

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**Interpretation:** The interpretation is that the moratorium imposed under the CIRP overrides any

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**Application:** The court applied this principle to the present case, holding that the Income

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Vijendra Kumar…
- **Respondents:** Transparent…; Income Tax…

## Timeline

- **2019-01-02 — Notice issued by Income…**: Income Tax Department issued notice no PNOTO/TDS-03/ Recovery/2018-19 dated 2nd January,…
- **2019-03-08 — Commencement…**: The Corporate Insolvency Resolution Process (CIRP) in the case of Corporate Debtor…

## 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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