Authority: National Company Law Tribunal (NCLT), Division Bench (Court– I) Chennai

Order Date: 06.07.2026

Case Overview

The National Company Law Tribunal (NCLT), Chennai, presided over by Hon'ble Shri Sanjiv Jain, Member (Judicial) and Hon'ble Shri Venkataraman Subramaniam, Member (Technical), heard three Interlocutory Applications (IAs) in the main petition CP/577/IB/2017, titled Larsen & Toubro Ltd Vs Hallmark Living Space Pvt Ltd. The corporate debtor, Hallmark Living Space Pvt Ltd, is under liquidation. The applications pertained to a GST refund dispute, the handover of documents by suspended directors, and the representation of the corporate debtor in criminal proceedings.

IA(IBC)/1895(CHE)2025: This application involved a dispute between the liquidator and the GST department. The GST department's counsel argued that there is no provision for a refund under Section 54 of the CGST Act, 2017, and that the amount could only be carried forward as an input tax credit. The liquidator's counsel countered, arguing that withholding the refund amounted to unjust enrichment for the department and invoked the overriding provisions of Section 238 of the Insolvency and Bankruptcy Code (IBC), 2016. The Tribunal directed both parties to file short written submissions, not exceeding two pages, within one week. The matter was adjourned for further hearing on 20.07.2026.

IA(IBC)/805(CHE)/2026: This application concerned the handover of documents from Respondents 1 and 2 (suspended directors) to the liquidator. The respondents' counsel stated that all documents in their possession had already been handed over but offered to assist the liquidator in locating any documents that might still be in the corporate debtor's office, which is under the liquidator's charge. The liquidator's counsel had no objection to this proposal. The Tribunal directed Respondents 1 and 2 to file a point-wise reply supported by an affidavit within one week. It further fixed 07.07.2026 at 12:00 Noon for Respondents 1 and 2 to visit the corporate debtor's office to locate the documents, after which a report was to be submitted. The application was listed for hearing on 20.07.2026.

IA(IBC)/765(CHE)/2026: This application was filed by the liquidator seeking relief to be represented in criminal proceedings CC No.2991/2024 before the Hon'ble Additional Chief Metropolitan Magistrate, Egmore, Chennai. The liquidator sought to formally appoint Mr. C. Anand Jain, the suspended Managing Director, as the proper person to represent the company in these proceedings or to be permitted to represent the company himself. The counsel for Respondent 1 (Mr. C. Anand Jain) informed the Tribunal that he remained an accused in the proceedings and that the ACMM Court had already passed an order on 29.01.2026 directing that the company be represented by the liquidator. After hearing the parties, the Tribunal disposed of the application by directing the liquidator to represent the corporate debtor (Hallmark Living Space Pvt Ltd) in the criminal proceedings as a representative appointed by the NCLT.

Final Outcome

The Tribunal issued specific procedural directions for two applications (IA/1895/2025 and IA/805/2026), adjourning them to 20.07.2026 for further hearing. The third application (IA/765/2026) was disposed of, with a final ruling that the liquidator is to represent the corporate debtor in the ongoing criminal case CC No.2991/2024.

Topics: Insolvency Litigation, GST Compliance, Director Liability