Case Law Details
Shree Ram Lime Products Pvt. Ltd. Vs Gee Ispat Pvt. Ltd. (NCLT)
NCLT HELD THAT: We therefore hold that the tax liability arising out of the sale shall be distributed in accordance with the provisions of Section 53 of the Code. The applicability of Section 178 or 194 IA of the IT Act will not have an overriding effect on the water fall mechanism provided under Section 53 of the Code, which is a complete code in itself, and the capital gain shall not be taken into consideration as the liquidation cost. The Capital Gain will be treated as Operational Debts along with other dues of the government and will be paid according to water fall mechanism as referred above.
BRIEF FACTS:
1. The learned Liquidator under Section 60(5) of the Insolvency & Bankruptcy Code, 2016, praying for directions/clarifications in respect of certain steps required to be taken after liquidating the assets of the Corporate Debtor.
2. Vide order dated 05.10.2018, liquidation of the assets of the Corporate Debtor had been directed as no resolution of the business of the Corporate Debtor was proposed.
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