Transit Geo System Integrators Private ... vs Stahl Tecniks Private Limited

Transit Geo System Integrators Pvt. Ltd. ....Appellant Vs. Stahl Tecniks Pvt. Ltd. ...Respondent For Appellant: Mr. Dhiren R. Dave, Advocate. For Respondent:

ORDER

(Through Virtual Mode)

03.02.2022: Heard Shri Dhiren R. Dave, Learned Counsel for the

Appellant.

2. This Appeal has been filed against the order passed by the

Adjudicating Authority (National Company Law Tribunal), New Delhi Bench,

Court-II dated 20.10.2021 by which Application filed by the Appellant under

Section 9 of the Code has been rejected. The Application was filed by the

Appellant under Section 9 claiming recovery of the amount from Corporate

Debtor due to reason that Form C was not supplied to the Appellant and due

to which tax liability was fastened on the Appellant by the Sales Tax

assessment order dated 28.03.2017. It is submitted that the amount which

was claimed falls within the definition of Section 5(21) of the Code and it was

operational debt. The Adjudicating Authority has rejected the Application. 2

3. In the Sales Tax assessment order, liability was fastened against the

Appellant by assessment order dated 28.03.2017 under which he has to

make the payment to Sales Tax due. The Application under Section 9 by the

Appellant was nothing but claim of recovery of difference between

concessional payment and payment of Sales Tax which has made under the

assessment order.

4. We are of the view that Section 9 proceedings are not envisaged for

such kind of claims. It is well settled and time and again repeated by the

Hon'ble Supreme Court in "Swiss Ribbons Pvt. Ltd. Vs. Union of India-

(2019) 4 SCC 17" and other cases that IBC is not a recovery proceeding. In

event, if the Appellant has any claim against the Corporate Debtor regarding

sales tax dues, it is open for them to take such proceeding as may be

permissible but present was not a case where Section 9 proceedings ought to

have been initiated.

5. We do not find any error in the impugned order of the Adjudicating

Authority rejecting the Application. The Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Dr. Ashok Kumar Mishra] Member (Technical)

[Dr. Alok Srivastava] Member (Technical) Anjali/nn

Comp. App. (AT) (Ins.) No. 106 of 2022