Authority: National Company Law Tribunal, Division Bench, Court-1, Ahmedabad
Order Date: 22/06/2026
Case Overview
The application was filed by Sarens Heavy Lifts India Pvt. Ltd. (Applicant) against Demac Technologies Pvt. Ltd (Respondent, representing the Income Tax Department) under Section 60(5)(c) read with Section 14 of the Insolvency and Bankruptcy Code, 2016, along with Rule 11 of NCLT Rules, 2016. The dispute concerns the adjustment/set-off of an income-tax refund amounting to Rs. 41,64,728 by the Income Tax Department against pre-CIRP income-tax dues of the Corporate Debtor during the Corporate Insolvency Resolution Process (CIRP).
The applicant seeks declaration that this adjustment is contrary to Section 14 of IBC, 2016 (which imposes a moratorium) and therefore illegal, void and non-est. The specific prayers include: reversal of the adjustment; credit/release of Rs. 41,64,728 to the Corporate Debtor's designated ICICI Bank account (Account No.: 000305026929, IFSC: ICIC0000003); payment of statutory interest on the refund amount from when it became payable until actual release; and direction to the department to refrain from any coercive action for pre-CIRP dues during moratorium.
Final Outcome
The Tribunal issued notice to the Respondent returnable by the next date of hearing. The applicant was directed to serve the notice along with copy of the order through Registered Post/Speed-post, Dasti mode, and email. The Respondent (Income Tax Department) was directed to file its reply within three days from receipt of notice. The matter has been listed for further consideration on 01/07/2026.
Topics: Insolvency Moratorium, Tax Refund Adjustment, NCLT Proceedings