A writ petition was filed on the question whether the petitioner-bank or the Income-tax Department would have precedence to recover the outstanding liabilities of the assessee under section 226(3) of the Income-tax Act, 1961. A moratorium had been declared in respect of the assessee under section 14(1) of the Insolvency and Bankruptcy Code, 2016 by the National Company Law Tribunal, accordingly court held that in view of the moratorium the petition had become infructuous.
State Bank of India v. CIT (2019) 414 ITR 519 (P&H) (HC)
S. 226 : Collection and recovery-Modes of recovery-Insolvency proceedings initiated-Priority of debts-Creditor and department-Declaration of moratorium by National Company Law Tribunal against assesse-Petition is held to be infructuous [Insolvency and Bankruptcy Code, 2016, S. 14(1), Art. 226, 227]