STATE OF GUJARAT Vs. SANJAY KUMAR AGARWAL

JUDGEMENT

(1.) Draft amendment granted. In this petition under Article 226 of the Constitution of India, the State has challenged the order dated 18.11.2019 passed by the National Company Law Tribunal, Mumbai Bench, in Misc. Application No. 2357 of 2019 in Company Petition No. 1514/I&BC/NCLT/MB/MAH.2017. By the operative part of the order so passed, the Tribunal has directed concerned authorities to lift the attachment of the properties in question so that they can be put to sale by the liquidator and thereupon the sale proceedings be distributed under Section 53 of the I&B Code in order of priority prescribed therein.

(2.) Mr.Kamal Trivedi, learned Advocate General, while assailing this order of the Tribunal made the following submissions:

(3.) Learned Advocate General Shri Kamal Trivedi for the State would contend that the Tribunal has erred in relying on a decision of the Andhra Pradesh High Court in the case of Leo Edibles & Fats Limited vs. The Tax Recovery Officer, Income Tax Department . Before the Andhra Pradesh High Court, what was under consideration was effect of attachment under Section 178(6) of the Income Tax Act. The section which was under consideration was the amended section 178(6) by which sub- section 6 of section 178 provided that the provisions of this section shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force except the provisions of the Insolvency & Bankruptcy Code, 2016. According to the learned Advocate General, subsection (6) of section 178 , as it stood prior to its amendment read to the effect that the provisions of section 178 shall have effect notwithstanding anything to the contrary contained in any other law for the time being in force.