Liquidator Never Informed Of Reassessment Proceedings, Patna High Court Quashes Order

The Patna High Court has quashed the order as the liquidator was not informed of the reassessment proceedings.The bench of Chief Justice K. Vinod Chandran and Justice Partha Sarthy has observed that the liquidator should be noticed and participate in the reassessment proceedings. The notices were all issued to the email of the assessee after the liquidator was appointed, which makes it clear that the liquidator was never informed of the reassessment proceedings. The appellant/assessee is under liquidation by orders of the National Company Law Tribunal (NCLT) Chandigarh Bench. The liquidator, who represents the assessee, has been appointed as per an order passed by the NCLT. The liquidator representing the assessee has come before the court with a writ petition challenging the re-assessment for the years 2012–2013. The petitioner contended that the liquidator was never issued notice of a re-assessment and could not participate in the re-assessment. There are also claims for refunds that are being prosecuted for the years 2013–2014 to 2015–2016 before the appropriate authority. There should be a proper assessment proceeding with the participation of the petitioner. As per Section 33(5) of the Insolvency and Bankruptcy Code, 2016, when a liquidation order has been passed, no suit or other legal proceeding shall be initiated by or against a corporate debtor.The department contended that the order itself indicates that notices were sent by e-mail, and even the Advocate, who was prosecuting the refund application before the Tax Authorities, was given notice and informed the respondents that the company was in liquidation. The court noted that the moratorium spoken of under the IBC is either as per the terms of Section 14 or Section 33(5), and there can be no recovery made, though the authorities would be entitled to assess or determine the quantum of duties or taxes.The court directed the liquidator to appear before the assessing officer on August 21, 2024, after filing proper objections. The assessment order itself shall be considered a notice for re-assessment. After filing the objection, the assessing officer shall hear the matter on the same day or any other date with an intimation to the liquidator, who is representing the assessee.Counsel For Appellant: Abhinav MishraCounsel For Respondent: Vikash KumarCase Title: M/s Isolux Corsan India Engineering and Construction Private Limited Versus State of BiharLL Citation: 2024 LiveLaw (Pat) 75Case No.: Civil Writ Jurisdiction Case No.13042 of 2022Click Here To Read The Order

Liquidator Never Informed Of Reassessment Proceedings, Patna High Court Quashes Order

Mariya Paliwala

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