In a recent case, the Delhi High Court closed a writ petition due to a process for resolving corporate insolvencies pending before the National Company Law Tribunal.
The writ petition was filed by the petitioner, Commissioner of Income Tax, challenging the rejection of resolution professionals.
In this matter, respondent number 2 is undergoing the Corporate Insolvency Resolution Process before the National Company Law Tribunal, Delhi Bench. Before the bench, Kanisk Khetan, counsel representing respondent no. 2, pointed out that the petitioner/revenue did not respond to the public announcement made by the Interim Resolution Professional (IRP).
After analyzing the facts, the bench observed that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, is operative. Therefore, there was no purpose served. The division bench of Justice Rajiv Shakdher and Justice Girish Kathpalia held that, depending on the outcome of the proceedings pending before the NCLT for reviving the petition, the petitioner can approach the court.
Gaurav Gupta, senior standing counsel represented the petitioner/revenue.
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