The NCLAT New Delhi bench of Justice Ashok Bhushan (Judicial Member) and Barun Mitra (Technical Member) has held that section 43 of the code can be attracted only when the transaction in question is made by the corporate debtor and not when it is made by the third party in pursuance of a statutory demand.
Brief Facts
The corporate debtor was admitted into the insolvency on June 21, 2019. When the moratorium was in operation, the Madhya Pradesh Commercial Tax Department issued a notice on July 3, 2019 in which VE Commercial Vehicles Ltd, was directed to pay ₹17,12,094 as VAT due on behalf of the corporate debtor.
Thereafter, the Resolution Professional filed an application under sections 43 and 60(5) of the code in…
