Isolux Corsan India Engineering and Construction Private Limited Vs State of Bihar (Patna High Court)
The case of Isolux Corsan India Engineering and Construction Private Limited Vs State of Bihar (Patna High Court) involves a writ petition filed by a company under liquidation. The petitioner, represented by the appointed Liquidator, challenged a re-assessment order for the financial year 2012-2013. The National Company Law Tribunal (NCLT), Chandigarh Bench, had earlier ordered the liquidation and appointed the Liquidator on February 6, 2020.
The primary contention raised by the petitioner was that the Liquidator was not issued a notice regarding the re-assessment and hence could not participate in the proceedings. Additionally, ongoing claims for refunds for subsequent years (2013-2014 to 2015-2016) were highlighted, emphasizing the need for a proper assessment process involving the Liquidator. The petitioner cited Section 33(5) of the Insolvency and Bankruptcy Code (IBC) 2016, which restricts the initiation of any legal proceedings against a corporate debtor once a liquidation order is passed. The petitioner also referred to the ABG Shipyard Liquidator v. Central Board of Indirect Taxes & Customs (2023) ruling, which clarifies that while tax authorities may assess dues, they cannot initiate recovery, and any claims must be submitted to the Liquidator for resolution under the IBC framework.
