The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Barun Mitra (Technical Member) and Mr. Arun Baroka (Technical Member) has held that Income Tax Refund received by the bank in the corporate debtor’s account during Corporate Insolvency Resolution Process (CIRP) cannot be withheld on ground and such amount must be remitted to the liquidation bank account of the corporate debtor.
Corporate Insolvency Resolution Process (CIRP) of the corporate debtor, Topsgroup Services and Solutions Limited commenced on 19.02.2021, on an application filed by the Punjab National Bank (International) Limited.
During CIRP of the corporate debtor, the appellant received an amount…