ACIT Vs Nirjala Teleholdings Limited (ITAT Mumbai)
ITAT Mumbai Dismisses Revenue Appeals In Limine: IBC Moratorium Bars Any Proceedings Against Corporate Debtor
In these Revenue appeals, Tribunal noted that Nirjala Teleholdings Ltd had already been admitted into Corporate Insolvency Resolution Process (CIRP) by NCLT, Chennai Bench, vide order dated 13.04.2023 u/s 7 of the IBC. As a consequence, the statutory moratorium u/s 14(1) came into immediate effect, prohibiting the institution, continuation or adjudication of any proceedings against the corporate debtor before any Court, Tribunal or authority. The NCLT order expressly clarified that the moratorium commenced from the date of admission & an Interim Resolution Professional (IRP) had been appointed to take charge of the corporate debtor.
Tribunal observed that during the moratorium period it is legally barred from proceeding with the appeals where the corporate debtor is a party. Any adjudication during the moratorium would violate the statutory mandate of the IBC. Since no permission from the IRP or Committee of Creditors had been produced, Tribunal held that the appeals cannot be decided on merits at this stage.
Accordingly, Tribunal dismissed the Revenue appeals in limine, with liberty to seek restoration once the moratorium is lifted or appropriate leave under the IBC is obtained. The proceedings were kept in abeyance in compliance with section 14 of the IBC.
