# In the matter of Shree Geeta Textile Mills Private Limited

> NCLT judgment dated 2026-03-10. Citation: TCN-2026-NCLT-00268. The case involves an Interlocutory Application (I.A. No. 366/MP/2025) filed by the Resolution…

- **Court:** NCLT
- **Order date:** 10 Mar 2026
- **Citation:** TCN-2026-NCLT-00268
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-indore/shree-geeta-textile-mills-private-limited-02a3dcb5

## Summary

### Background

The case involves an Interlocutory Application (I.A. No. 366/MP/2025) filed by the Resolution Professional (Nishant Agrawal) of Shree Geeta Textile Mills Private Limited, the Corporate Debtor, under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016. The application seeks directions against the Income Tax Department (ITD) for illegally and unilaterally adjusting an income tax refund of Rs. 4,95,720/- due to the Corporate Debtor against a pre-CIRP outstanding demand during the moratorium period.

## Facts

The Corporate Debtor, Shree Geeta Textile Mills Private Limited, was admitted into CIRP vide order dated 13.11.2024.

A moratorium under Section 14 of the IBC came into effect from 13.11.2024.

The Income Tax Department (ITD) adjusted an income tax refund of Rs. 4,95,720/- due to the Corporate Debtor against a pre-CIRP outstanding demand on 22.11.2024.

The adjustment was made by the Centralised Processing Centre (CPC), Bengaluru.

The Resolution Professional objected to the adjustment, contending that it violated the moratorium under Section 14 of the IBC.

The Income Tax Department claimed that the adjustment was automatic and that they were unaware of the moratorium at the time of the adjustment.

…

## Issues and analysis

### Issue 1: Whether the adjustment of the income tax refund by the Income Tax Department during the moratorium …

**Ratio:** Yes, the adjustment is a

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**Reasoning:** The moratorium under Section 14 operates by force of statute and prohibits any recovery

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**Interpretation:** Section 14 imposes a statutory prohibition on any action for recovery,

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**Application:** The Tribunal held that the Income Tax Department's adjustment of the refund was

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## Parties

- **Judges:** Brajendra Mani…; Man Mohan…
- **Appellants:** Nishant A…
- **Respondents:** Shree Geeta…; Income Tax…
- **Other parties:** Bank of…; Chaya G…; +1 more
- **Advocates:** Darshana…; Yashika B…; +1 more

## Timeline

- **2024-03-20 — Assessment…**: Assessment Order passed for A.Y. 2022–23 under Section 144 of the Income Tax Act, 1961,…
- **2024-11-01 — Intimatio…**: Intimation sent to the assessee under Section 245 of the Income Tax Act, 1961 received…

## 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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