Shri Shyam Industries Private Limited Vs Prosperity Steels Limited (NCLT Kolkata)

Shri Shyam Industries Private Limited Vs Prosperity Steels Limited (NCLT Kolkata)

In the case of Shri Shyam Industries Private Limited –vs.- Propserity Steels Ltd. [CP (IB) No. 998/KB/2018, Kol dated 18-02-2021], the Resolution Applicant sought various reliefs and concessions. In response to the same, NCLT has held as under: –

• With respect to waiver of statutory dues, taxes, penalties, penal interest, demands, etc. incurred for the period till the commencement of CIRP date for period prior to CIRP, NCLT has allowed the relief/concession.
• With respect to reversal of disallowances made in assessment, c/f of losses for further 8 years, NCLT has refrained from giving any direction and stated that same shall be in accordance with IT Act, 1961.
• With respect to waiver of fees/penalty for late filing of Returns to be filed by RA, NCLT has denied the relief/concession.
• With respect to abatement of all pending proceedings/appeals, waiver of Income tax demands and penalties, waiver of demand under Indirect tax laws, exemption from tax on waiver of liabilities, waiver of employee dues, NCLT held that relief shall be in accordance with Sec. 32A of IBC.

FULL TEXT OF THE NCLT JUDGMENT/ORDER

1. This Court convened through video conferencing.

2. This is an Application moved on 06.01.2021 by Partha Pratim Ghosh, Resolution Professional of Prosperity Steels Limited (CIN: U27103WB1998PLC087025), by invoking the provisions of section 30(6) of the Insolvency and Bankruptcy Code, 2016 read with regulation 39(4) of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 for approval of a Resolution Plan in respect of Prosperity Steels Limited.