A Single Bench of the Madras High Court has recently allowed the withdrawal request of the Empee Distilleries Limited in the Writ of Declaration (quo warranto) filed in order to declare the demand order issued against the assessee quashed in view of the resolution plan. The plea to allow the writ of Certiorari to be filed afterwards was also allowed subject to restrictions.
Empee Distilleries Limited (EDL) is a public limited company incorporated in India. At the instance of creditor banks, EDL went into Corporate Insolvency Resolution Proceedings (CIRP) under the Insolvency and Bankruptcy Code, 2016. The National Company Law Tribunal (NCLT) Chennai made an order approving a resolution plan. The plan was challenged at the NCLAT and the Supreme Court.
Subsequently, the assessment order passed against the assessee was also challenged on the ground of the resolution plan.
The assessment order was carried in appeal by EDL by way of a regular statutory appeal under Section 250 of the Income Tax Act. EDL did not respond to the notices from the Appellate Authority but the Appellate Authority perused the records of EDL, returned as it found no reason to interfere with the order of Assessing Officer dated and dismissed the appeal. Aggrieved assessee filed the present writ petition.
Karthik Lakshmanan, counsel on record for writ petitioner made an endorsement in the case file requesting to withdraw the petition preserving the liberty to file a Writ of Certiorari.
“A perusal of the NCLT order dated 20.01.2020 brings to light that CIRP qua EDL commenced on 01.11.2018.”, the Single Bench of Justice M Sundar observed.
He also observed that, the second respondent, Deputy Commissioner of Income Tax made the impugned assessment order on 06.02.2015. much before commencement of CIRP.
The plea for withdrawal was allowed with the liberty to file a fresh Writ of Certiorari subject to be tested on its own merits and in accordance with law in the Admission Board and for specificity. The Madras High Court also chose to refrain from expressing any views in regard to the proceedings under Income Tax Act and Insolvency and Bankruptcy Code.
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