Revival of proceedings u/s 9 of IBC Act for non-payment of TDS is unsustainable

Amitabh Roy Vs Master Development Management (India) Pvt. Ltd. (NCLAT Delhi)

Held that in non-payment of the TDS amount by the Corporate Debtor there was no occasion for admitting Section 9 Application by the Adjudicating Authority.

Facts-

The Operational Creditor had filed a petition under Section 9 of the IBC, seeking initiation of Corporate Insolvency Resolution Process against the Corporate Debtor for payment of an amount of Rs. 9,48,997/-. After issuance of notice in the company petition, there were certain settlement talks between the parties. Both the counsel made statement before the Adjudicating Authority on 03.10.2019 that they have settled the matter but terms of settlement are yet to be finalized. Accordingly, the NCLT disposed off the petition with liberty to revive, if settlement talks fail.

Subsequently, the parties entered into a settlement. The said agreement also mentioned that the claim is inclusive of TDS amount.

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