# In the matter of Varun Resources Limited

> NCLT judgment dated 2023-11-22. Citation: TCN-2023-NCLT-00630. I.A. 3426/2023 was filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 22 Nov 2023
- **Citation:** TCN-2023-NCLT-00630
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/varun-resources-limited-613db6d9

## Summary

### Background

I.A. 3426/2023 was 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 application sought the de-attachment of several bank accounts maintained with Axis Bank, ICICI Bank, and Bank of India. These accounts were initially held in the name of Varun Shipping Limited, whose Ship Management & Shipping Investment Business had merged into Varun Resources Limited. The Respondent had marked a lien on these accounts due to outstanding tax demands against Varun Shipping Co. Limited. The Applicant argued that these accounts now belong to the Corporate Debtor and are necessary for the liquidation process.

## Facts

The Liquidator of Varun Resources Limited filed an application (I.A. 3426/2023) seeking the de-attachment of bank accounts held with Axis Bank, ICICI Bank, and Bank of India. These accounts originally belonged to M/s Varun Shipping Limited, whose Ship Management & Shipping Investment Business was merged into Varun Resources Limited. The Deputy Commissioner of Customs had marked a lien on these accounts due to outstanding tax demands against Varun Shipping Co. Limited. The Corporate Insolvency Resolution Process (CIRP) commenced on 2017-06-14, and the Tribunal ordered the liquidation of the Corporate Debtor on 2018-12-04, appointing the Applicant as Liquidator. The lien was marked by the Respondent on 2013-11-22 by Axis Bank Limited and on 2013-12-09 by ICICI Bank

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## Issues and analysis

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

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

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**Reasoning:** The court reasoned that the merger of Varun Shipping Co. Ltd.'s Ship Management &

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**Interpretation:** The interpretation of the merger scheme and its effect on asset ownership is

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**Application:** The court applied this principle to the specific facts, noting that the merger

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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…
- **2018-12-04 — Liquidation…**: Tribunal ordered liquidation of the Corporate Debtor, and the Applicant was appointed as…

## 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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