# In the matter of Varun Resources Limited

> NCLT judgment dated 2023-11-22. Citation: TCN-2023-NCLT-00622. This case involves IA 3426/2023 filed under Section 60(5) of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Nov 2023
- **Citation:** TCN-2023-NCLT-00622
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/varun-resources-limited-126798df

## Summary

### Background

This case involves IA 3426/2023 filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, read with Rule 11 of NCLT Rules, 2016, by the Liquidator of Varun Resources Limited against the Deputy Commissioner of Customs. The applicant sought the de-attachment of several bank accounts maintained with Axis Bank, ICICI Bank, and Bank of India. These accounts were marked with a lien by the respondent due to outstanding tax demands against Varun Shipping Co. Limited, which later merged into Varun Resources Limited. The Corporate Insolvency Resolution Process (CIRP) commenced on 14.06.2017, and liquidation was ordered on 4.12.2018, with the applicant appointed as Liquidator.

## Facts

The Liquidator of Varun Resources Limited filed IA 3426/2023 seeking the de-attachment of bank accounts held with Axis Bank, ICICI Bank, and Bank of India. These accounts were marked with a lien by the Deputy Commissioner of Customs due to outstanding tax demands against M/s Varun Shipping Co. Limited. Varun Shipping Co. Limited merged into Varun Resources Limited as per orders of the Bombay High Court dated 9.5.2014 & 24.9.2014. The Corporate Insolvency Resolution Process (CIRP) commenced on 14.06.2017, and liquidation was ordered on 4.12.2018. The lien was marked by the Respondent on 22.11.2013 by Axis Bank Limited and on 9.12.2013 by ICICI Bank Limited. The applicant requested the Respondent to lift the lien marked by them on the bank accounts vide letter dated

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## Issues and analysis

### Issue 1: Whether the lien marked on the bank accounts of Varun Resources Limited by the Deputy Commissioner …

**Ratio:** The principle is that upon a merger, the assets and liabilities of the merged entity

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**Reasoning:** The court reasoned that since Varun Shipping Co. Limited merged into Varun Resources

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**Interpretation:** The legal issue involves interpreting the effect of a merger on the assets of

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**Application:** The court applied the principle by directing the Deputy Commissioner to lift

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Sanjeev Mah…
- **Respondents:** Varun Resources…; The Deputy…

## Timeline

- **2017-06-14 — CIRP Comm…**: Corporate Insolvency Resolution Process (CIRP) commenced in the case of the Corporate…
- **2018-12-04 — Liquidation…**: Tribunal ordered for Liquidation of the Corporate Debtor, and the Applicant was appointed…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 35(1) — Powers and duties of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-35)

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