6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

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Fate Of Unpaid Tax Liability Under The Insolvency And

Bankruptcy Code
Tarun Gulati, Senior Advocate & Kumar Sambhav
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14 July 2020 1:15 PM

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Insolvency and Bankruptcy Code

I. Introduction

Taxation disputes and recovery of taxes from companies is one of the most
litigated subjects in the country. Often times, outstanding tax liabilities constitute a
major portion of the liabilities of a company and can lead to its sickness. The
revival and/or liquidation of such a company would depend on how tax liabilities

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are dealt with in the resolution process. Therefore, a wholesome understanding of

the fate of tax liability under the Insolvency and Bankruptcy Code, 2016 ("Code") is
essential both for the assessee as well as the tax department.

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II. Legal position prior to the introduction of the Code

The common law doctrine of the priority of crown debts envisages precedence of
crown debts over other creditors when it comes to recovery of dues. The doctrine,
as developed and evolved, provides that the Crown's preferential right to recovery
of debts over other creditors is confined to ordinary or unsecured creditors. In
other words, it is not entitled to precedence over a prior secured debt.[1] The
Supreme Court[2] has summed up the law as under:

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"1. There is a consensus of judicial opinion that the arrears of tax due to the State
can claim priority over private debts.

2. The common law doctrine about priority of Crown debts which was recognised
by Indian High Courts prior to 1950 constitutes "law in force" within the meaning of
Article 372(1) and continues to be in force.

3. The basic justification for the claim for priority of State debts is the rule of
necessity and the wisdom of conceding to the State the right to claim priority in
respect of its tax dues.

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4. The doctrine may not apply in respect of debts due to the State if they are
contracted by citizens in relation to commercial activities which may be
undertaken by the State for achieving socio-economic good."

However, given the limitations of the applicability of the common law principles,
most of the Indian taxation statutes have incorporated provisions for preferential
recovery of tax dues by treating them as a first charge against the property of the
company.[3] Another, step taken to make the recovery of tax dues easier was to
allow them to be recovered as arrears of land revenue.[4] The Supreme Court, in
relation to Section 46(2) of the Income Tax Act, 1922, which provides for recovery
of tax as if it were an arrear of land revenue, has held that the provision does not
deal with doctrine of priority of Crown debts at all, and it was impossible to accede
to the argument that Section 46 displaces the application of the said doctrine.[5]

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Often times, the statutory preference created by taxing statutes in favour of the tax
department and the rights of a secured creditor have come in conflict. In Central
Bank of India v. State of Kerala,[6] the Supreme Court was confronted with the
issue of primacy between State tax legislations containing provisions conferring
first charge on the property on one hand as against provisions of the Recovery of
Debts Due to Banks and Financial Institutions Act, 1993 ("RDDBFI Act") for
recovery of 'debt' and the Securitisation and Reconstruction of Financial Assets
and Enforcement of Security Interest Act, 2002 ("SARFAESI Act") for enforcement
of 'security interest'. The Supreme Court, after noticing the non-obstante clause
contained in Section 34(1) of the RDDBFI Act and Section 35 of the SARFAESI Act,
held that "[T]he Court could have given effect to the non obstante clauses
contained in Section 34(1) of the DRT Act and Section 35 of the Securitisation Act
vis a vis Section 38C of the Bombay Act and Section 26B of the Kerala Act and
similar other state legislations only if there was a specific provision in the two

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enactments creating first charge in favour of the banks, financial institutions and
other secured creditors but as the Parliament has not made any such provision in
either of the enactments, the first charge created by the State legislations on the
property of the dealer or any other person, liable to pay sales tax etc., cannot be
destroyed by implication or inference, notwithstanding the fact that banks, etc. fall
in the category of secured creditors…"

In relation to first charge on property provided by Section 11-AAAA of the

Rajasthan Sales Tax Act, 1954 vis-à-vis an earlier mortgage on the same property,
the Supreme Court has held that the former would have priority over the latter.[7]
Similarly, the Supreme Court has held that the statutory first charge created under
Section 33-C of the M.P. General Sales Tax Act, 1958 would prevail over a charge
created in favour of a bank in respect of a loan.[8]

Under the Companies Act, 1956, in relation to payment of debts in winding up,
Section 530 provides for the first preference to all revenues, taxes, cesses and
rates due from the company to the Central or a State Government payable within
twelve months before the relevant date. However, Section 530 is subject to Section
529A of the Act which provides that workmen's dues and dues to secured creditors
would be paid in priority to all other debts. Further, the Supreme Court has taken
the view that a lien holder, being a secured creditor, would have priority over
government dues, i.e., income tax dues therein.[9] Therefore, insofar as winding up
proceedings are concerned, tax dues get preference of payment right only after
secured creditors and workmen's dues.

Section 178 of the Income Tax Act, 1961 ("IT Act") provides provisions for a
'Company in liquidation'. By virtue of Section 178(6), it overrides anything contrary
contained in any other law. Section 178(2) provides that the Assessing Officer
shall notify to the liquidator within three months from the date on which he
receives notice of the appointment of the liquidator the amount which, in the
opinion of the Assessing Officer, would be sufficient to provide for any tax which is

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then, or is likely thereafter to become, payable by the company. Further, as per

Section 178(3), prior to such notification by the Assessing Officer and till the time
the Liquidator sets aside an amount equal to the amount notified, the Liquidator
shall not part with any of the assets of the company.

The Supreme Court has held that the effect of Section 178(3) is that the amount
set aside by the Liquidator is marked off as outside the area of the winding up
proceedings and the jurisdiction of the winding up court.[10] Further, under Section
530(1)(a) of the Companies Act, 1956, all taxes which have 'become due and
payable' alone are entitled to preferential payment. The amount should have been
crystalised into a liability. Under Section 178(2) read with Section 178(3) of the
Income-tax Act, provision should be made for any tax which is then or is likely
thereafter to become payable. Even the amounts which have not been crystalised
into a liability, but which are 'likely to become due thereafter' should be taken note
of.[11]

Similar to Section 178 of the IT Act is Section 17 of the Central Sales Tax Act,
1956, and the same interpretation applies to Section 17 Central Sales Tax Act,
1956 as applies to Section 178 of the IT Act.[12]

III. Legal position under the Code

Part II of the Code deals with 'Insolvency Resolution and Liquidation for Corporate
Persons'. As the expression suggests, Part II contemplates two steps. First is the
Insolvency Resolution wherein a Resolution Applicant proposes a Resolution Plan
for insolvency resolution of a Corporate Person as a going concern. The alternative
in case of failure of Insolvency Resolution is Liquidation. This section of the article
examines (i) the classification of tax liability under the Code, (ii) the effect of
moratorium on pending tax proceedings, (iii) the fate of tax liability in case of an

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approval of a Resolution Plan, (iv) the fate of tax liability in case a Corporate
Person suffers liquidation, and (v) the fate of proceedings against the officers of
the Corporate Debtor.

i. Classification of tax liability under the Code

Part II of the Code, inter alia, classify creditors as Operational Creditors and
Financial Creditors. Operational Creditors are defined as persons to whom an
Operational Debt is owed.[13] Operation Debt is defined as "a claim in respect of the
provision of goods or services including employment or a debt in respect of the
payment of dues arising under any law for the time being in force and payable to
the Central Government, any State Government or any local authority."[14] The
National Company Law Appellate Tribunal ("NCLAT"), while interpreting the said
definition, has held that taxes such as Income Tax, Value Added Tax, etc. come
within the meaning of the term Operational Debt. The NCLAT, further, held that the
Income Tax Department and the Sales Tax Department(s) are Operational
[15]

Creditors as defined under the Code.

ii. Effect of moratorium on pending tax proceedings

As soon as an application for initiation of Corporate Insolvency Resolution

Process is admitted, a moratorium is imposed in terms of Section 14 of the Code,
which is similar to the provisions of Section 22 of the Sick Industrial Companies
(Special Provisions) Act, 1985 ("SICA"). Where an application under SICA was
admitted, the Courts stayed recoveries or tax proceedings against sick companies
on a regular basis under Section 22 of the SICA.[16] Section 14(1)(a) of the Code
prohibits the institution of suits or continuation of pending suits or proceedings
against the corporate debtor including execution of any judgement, decree or order
in any court of law, tribunal, arbitration panel or other authority during the
subsistence of the moratorium. Courts have, relying on clause (a), not proceeded
with hearing the tax appeals and tax writs, and have disposed them with the liberty

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to revive subject to the provisions of the Code.[17] Similarly, by virtue of clause (b)
to Section 14(1), no payments can be made to any creditors after the imposition of
the moratorium. Moreover, Section 14(4) clarifies that the order of moratorium
continues to apply till the completion of the corporate insolvency resolution
process.

It follows that once an application is admitted, the tax authorities cannot proceed
with recovering the tax dues in the ordinary manner. Further, the tax departments
will be paid as per the rules and procedures prescribed for payment under the
Insolvency Resolution Process.

iii. Fate of tax liability in case of an approval of a Resolution Plan

Insofar as Operational Creditors are concerned, Section 30(2)(b) of the Code

provides that the payment made to Operation Creditors under a Resolution Plan
shall not be less than (i) the amount to be paid to such creditors in the event of a
liquidation of the Corporate Debtor under section 53, or (ii) the amount that would
have been paid to such creditors, if the amount to be distributed under the
resolution plan had been distributed in accordance with the order of priority in sub-
section (1) of section 53, whichever is higher. In other words, the amount paid shall
not be less than (i) the liquidation value, or (ii) the amount of disbursement
proposed by the resolution plan, whichever is higher, in case the respective
amounts are distributed as per the waterfall provided in Section 53.

Section 53 of the Code provides for the order of priority for distribution of
liquidation assets in case a Company faces liquidation. In the waterfall provided
for in Section 53(1), clause (e) is designated to "any amount due to the Central
Government and the State Government including the amount to be received on

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account of the Consolidated Fund of India and the Consolidated Fund of a State, if
any, in respect of the whole or any part of the period of two years preceding the
liquidation commencement date".

It is pertinent to mention that under Section 53(1) of the Code, higher priority is
provided to insolvency resolution process cost and liquidation cost [clause (a)],
workmen's dues and debts owed to secured creditors [clause (b)], wages and
employee dues [clause (c)], and financial debts owed to unsecured creditors
[clause (d)].

The High Court of Andhra Pradesh[18] was concerned with the issue that whether
an order of attachment passed by the Tax Recovery Officer in respect of a property
prior to the initiation of liquidation proceedings could be a bar to register the sale
of the said property in liquidation proceedings. The High Court, while holding that
tax liability being an input to the Consolidated Fund of India and of the States
comes within the ambit of clause (e), decided the issue in the negative.

In most cases, the disbursement proposed by the resolution plan as well as the
liquidation value gets exhausted before any payments can be made under clause
(e). It follows that, for the purpose of Section 30(2)(b) of the Code, there would not
be any amount payable to the tax department as the funds available would get
exhausted on payments made to other debts which have a preference over
government dues. In such a scenario, it is highly unlikely and, in fact, imprudent for
a Resolution Professional to propose payment of a significant portion of the
outstanding tax liability. This is because the decision to approve a Resolution Plan
is primarily taken by the Committee of Creditors which, except for in exceptional
cases, constitutes all the Financial Creditors of the Company. Financial Creditors,
acting in a commercially prudent manner, would solely be concerned with the
proportions of their payments. In fact, in most cases wherein Resolution Plans are
approved, the Operational Creditors get little or no payments whatsoever.

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Therefore, under the provisions of the Code, recovery of outstanding tax payments
is extremely difficult and the tax departments cannot claim any preference as they
could in the era before the Code.

Further, Section 31(1) of the Code states that "[I]f the Adjudicating Authority is
satisfied that the resolution plan as approved by the committee of creditors under
sub-section (4) of section 30 meets the requirements as referred to in sub-section
(2) of section 30, it shall by order approve the resolution plan which shall be
binding on the corporate debtor and its employees, members, creditors, including
the Central Government, any State Government or any local authority to whom a
debt in respect of the payment of dues arising under any law for the time being in
force, such as authorities to whom statutory dues are owed, guarantors and other
stakeholders involved in the resolution plan." On a reading of Section 31(1) of the
Code, it becomes clear that the Resolution Plan is binding on the creditors
including the Central Government and any State Government to whom statutory
dues are owed. It follows that the Resolution Plan is binding on the tax
departments. Therefore, irrespective of whether the Resolution Plan proposes any
payments of tax dues, such payment or non-payment would result in writing off of
the entire tax liability qua the Company. In this regard, while interpreting Section
31(1) of the Code, the Hon'ble Supreme Court in Committee of Creditors of Essar
Steel India Limited v. Satish Kumar Gupta ("Essar Steel"),[19] has held as follows:

"A successful resolution applicant cannot suddenly be faced with "undecided"

claims after the resolution plan submitted by him has been accepted as this would
amount to a hydra head popping up which would throw into uncertainty amounts
payable by a prospective resolution applicant who successfully take over the
business of the corporate debtor. All claims must be submitted to and decided by
the resolution professional so that a prospective resolution applicant knows
exactly what has to be paid in order that it may then take over and run the business
of the corporate debtor. This the successful resolution applicant does on a fresh
slate, as has been pointed out by us hereinabove."

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Therefore, the fate of tax liability of a Company in case of a successful Insolvency

Resolution lies in the explicit provisions of a Resolution Plan on which the tax
department has little control.

Once an insolvency petition is admitted against a Corporate Debtor, all its creditors
are required to submit their 'claims' to the Insolvency Resolution Professional. As
per Section 3(6) of the Code, a claim means (a) a right to payment, whether or not
such right is reduced to judgment, fixed, disputed, undisputed, legal, equitable,
secured or unsecured, and (b) right to remedy for breach of contract under any law
for the time being in force, if such breach gives rise to a right to payment, whether
or not such right is reduced to judgment, fixed, matured, unmatured, disputed,
undisputed, secured or unsecured. It is submitted that past tax liabilities, including
the liabilities on which stay has been obtained, come within the ambit of 'claims'.
As stated above, the fate of these claims is decided by the Resolution Plan.

Further, in relation to future tax liabilities where assessments are pending, the
Department may either assess the tax liability and submit the claim in which case
its fate would be decided by the Resolution Plan. However, in case such claims are
not filed, it is submitted that they will lapse by virtue of the clean slate doctrine
propounded by the Supreme Court in Essar Steel.

iv. Fate of tax liability in case a Corporate Person suffers liquidation

The rules for distribution of liquidation assets are provided under Section 52 and
53 of the Code. Section 52 applies to a secured creditor who, instead of
relinquishing its security interest to the liquidation estate and receive proceeds as
per the waterfall provided under Section 53, chooses to realise its security interest
in the manner specified therein. The High Court of Andhra Pradesh has held that
the Income-tax Department does not enjoy the status of a secured creditor and, as
such, it cannot avail the provisions of Section 52 of the Code, and must
necessarily take recourse to distribution of the liquidation assets as per Section 53
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of the Code.[20] This is true for all other taxes. The legislative intent is also clear
from the amendment made by the Code to Section 178 of the IT Act. Section 247
of the Code read with the Third Schedule appended thereto amended Section
178(6) to the IT Act to provide that the provisions of the Code will override
anything inconsistent provided to in Section 178. The Apex Court has also held
that given Section 238 of the Code, it is obvious that the Code will override
anything inconsistent contained in any other enactment, including the Income-Tax
Act.[21] Moreover, Section 82 of the Central Goods and Services Tax Act, 2017
("CGST Act"), which is a later legislation, provides for the tax to be first charge on
property. It states that "[N]otwithstanding anything to the contrary contained in any
law for the time being in force, save as otherwise provided in the Insolvency and
Bankruptcy Code, 2016 (31 of 2016), any amount payable by a taxable person or
any other person on account of tax, interest or penalty which he is liable to pay to
the Government shall be a first charge on the property of such taxable person or
such person." It is clear on a reading of Section 82 of the CGST Act that its
provisions will not override anything inconsistent contained in the Code. Therefore,
the first charge created by virtue of Section 82 of the CGST Act will not affect the
waterfall mechanism provided under Section 53 of the Code.

As such, the outstanding tax liabilities can only be paid as per Section 53 of the
Code. As stated above, in most cases, liquidation value gets exhausted before any
payments can be made against tax liabilities under clause (e). Therefore, the
likelihood of recovery of tax liabilities is bleak.

The doctrine of preference of Crown debts and the priority to secured creditors as
existing under the erstwhile regimes are no longer applicable under the Code. This
is because the Code provides a clear waterfall mechanism under Section 53 of the
Code, and Section 238 of the Code provides for an overriding effect to the Code
against any other law which may be inconsistent to the provision of the Code.

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v. Fate of pending proceedings against the officers of the Corporate Debtor

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Taxing statutes provide for imposition of penalties and criminal liabilities against
the officers of a company. As stated above, on the initiation of the Corporate
Insolvency Resolution Process, Section 14 of the Code provides for imposition of
moratorium. However, the scope of the moratorium is restricted to providing a
breathing period to the Corporate Debtor, and it is not applicable to the officers of
the Corporate Debtor. In this regard, in the context of liability for dishonour of a
cheque under the Negotiable Instruments Act, 1881, the NCLAT has held that
neither any criminal proceedings are covered within the ambit of Section 14 nor
can the directors take shelter of the said provision.[22] The High Court of Bombay
has also taken the view that Section 14 does not cover within its ambit criminal
proceedings.[23]

Further, the Code contains no provision for immunity from personal liability of any
officer of the Corporate Debtor either under the Insolvency Resolution or
Liquidation. In this regard, Section 32A of the Code is relevant. It provides for that
the cessation of the liability of a corporate debtor for an offence committed prior
to the commencement of the corporate insolvency resolution process. It, further,
provides that the corporate debtor shall not be prosecuted for such an offence
from the date the resolution plan has been approved, if the resolution plan results
in the change in the management or control of the corporate debtor. It is clear,
therefore, that it is only the Corporate Debtor that has been granted immunity that
too in case the resolution plan contemplates a change in its management.

Therefore, any pending proceeding or prosecution against any officer of the

Corporate Debtor will not be affected by the Corporate Insolvency Resolution
Process.

IV. Conclusion

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Given that the moratorium imposed on the admission of an insolvency application

prohibits continuation of any legal proceedings as well as any payment to
creditors, the probability of the recovery of the entire tax liability is miniscule.
Further, as explained above, the possibility of part recovery is also very less. In any
case, the legislative intent is clear, i.e., priority to insolvency resolution, be it by way
of approval of Resolution Plan or by way of liquidation, even though it may be at
the expense of the exchequer. However, the officers and directors of the corporate
debtor who have personal liability under different statutes cannot afford to sleep
easy and must be prepared to defend their personal assets against recovery of
outstanding tax dues.

Views are personal only.

(The authors are Senior Advocate and Advocate respectively practicing at the
Supreme Court of India)

[1] Dena Bank v. Bhikhabhai Prabhudas Parekh, (2000) 5 SCC 694.

[2] Builder Supply Corporation v. Union of India, AIR 1965 SC 1061.

[3] See Section 11E of the Central Excise Act, 1944, Section 142A of the Customs
Act, 1962, Section 88 of the Finance Act, 1994, Section 47A of the Delhi Value
Added Tax Act, 2004, Section 123 of the Delhi Municipal Corporation Act, 1957.

[4] See Section 11(1) of the Central Excise Act, 1944, Section 142(1) of the
Customs Act, 1962, Section 87 of the Finance Act, 1994, Section 43(3) of the Delhi
Value Added Tax Act, 2004.

[5] Builder Supply Corporation v. Union of India, AIR 1965 SC 1061.

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[6] Central Bank of India v. State of Kerala, (2009) 4 SCC 94.

[7] State Bank of Bikaner and Jaipur v. National Iron and Steel Rolling Corporation,
(1995) 2 SCC 19.

[8] State of M.P. v. State Bank of Indore, (2002) 10 SCC 441.

[9] Bombay Stock Exchange v. V.S. Kandalgaonkar, (2015) 2 SCC 1.

[10] Imperial Chit Funds Pvt. Ltd. v. ITO, (1996) 8 SCC 303.

[11] Imperial Chit Funds Pvt. Ltd. v. ITO, (1996) 8 SCC 303.

[12] Imperial Chit Funds Pvt. Ltd. v. ITO, (1996) 8 SCC 303.

[13] See Section 5(20) of the Code.

[14] See Section 5(21) of the Code.

[15] Pr. Director General of Income Tax v. Synergies Dooray Automotive Ltd., [2019]
149 CLA 462 (NCLAT).

[16] Union of India v. Shree Synthetics Ltd., 2002 (142) E.L.T. 529 (M.P.).

[17] See Principal Commissioner of Income Tax v. Monnet Ispat and Energy Ltd.,
(2018) 304 CTR (Del) 234 upheld in Principal Commissioner of Income Tax v.
Monnet Ispat and Energy Ltd., [2018] 147 CLA 300 (SC); CCE v. Monnet Ispat Ltd.,
2018 (361) ELT 474 (Chhattisgarh); Oceanic Tropical Fruits Private Limited v. The
Assistant Commissioner, MANU/TN/4830/2017; Sujana Towers Ltd. v. CCE, 2020-
TIOL-513-CESTAT-HYD.

[18] Leo Edibles & Fats Ltd. v. Tax Recovery Officer, [2018] 146 CLA 192 (Hyd.).

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[19] Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta,
[2019] 153 CLA 275 (SC).

[20] Leo Edibles & Fats Ltd. v. Tax Recovery Officer, [2018] 146 CLA 192 (Hyd.).

[21] Principal Commissioner of Income Tax v. Monnet Ispat and Energy Ltd., [2018]
147 CLA 300 (SC).

[22] Shah Brothers Ispat Pvt. Ltd. v. P. Mohanraj, order dated 31.07.2018 in
Company Appeal (AT) (Insolvency) No. 306 of 2018.

[23] Tayal Cotton Pvt. Ltd. v. State of Maharashtra, [2018] 147 CLA 122 (Bom.).

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259783)

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Debt Deconstructed: Analysis Of Supreme Court's Judgment On Determining The Nature Of Debt

The resolution professionals (RPs) are more often than not saddled with the decision of
categorizing the claims submitted before them either as financial or operational debt. The
Insolvency and Bankruptcy Code 2016 (IBC) has broadly defined the terms, financial and operationa
debt. However, given the diversity in the nature of claims,...

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6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

Pre-Legislative Consultation: An Overview

In a democratic country like India, public participation in legislation enactment process is vital.
Direct public consultation democratizes exposure to the principles and rights guaranteed by the
Constitution of India. Several enactments have resulted in public retaliation where no consultation
was sought from the public. Laws are enacted for...
(/articles/pre-legislative-consultation-overview-259779)

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6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

Unilateral Appointment And Section 12(5) Of Arbitration And Conciliation Act, 1996

Despite having landmark judgements and amendments, unilateral appointments have been
perplexing the courts in India. The question remains whether unilateral appointments are void ab
into, whether all unilateral appointments have to be tested with schedule seven and what is the
extent of waiver of rights under section 12 Act. Although the Apex ...
(/articles/unilateral-appointment-and-section-125-of-arbitration-and-conciliation-act-1996-259761)

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6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

Mapping Ai-Arbitration Landscape: Exploring Blockchain Based Arbitration Models Through A

Legal Lens
In today's time, blockchain technology stands to be extremely revolutionary in every aspect of life.
Its decentralized structure, immutable record keeping and operation on a peer-to-peer computer
network, makes it a transparent and trustworthy asset.i This technology finds its place in smart
contracts which simply connote contracts that are...
(/articles/mapping-ai-arbitration-landscape-exploring-blockchain-based-arbitration-models-through-a-
legal-lens-259710)

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6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

Can A Complaint Be Amended In 138 Case(s)?

Baring police cases, all cases in India start and depend upon the written instruments. In civil cases
plaintiffs begin their cases with filing requisite plaints, whereas in private criminal cases, complaint
in writing marks the initiation of the cases. Ergo, it is inevitable that the drafting of cases become
paramount importance as the fate of...

(/articles/amendment-of-complaint-section-138-negotiable-instruments-act-259622)

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6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

Reviewing The Role Of An Advisory Board Under Preventive Detention Law

Recently, a three-judge Bench of the Supreme Court in Nenavath Bujji v. State of Telangana,[1]
explained the 'proactive role' that an Advisory Board is expected to play while reviewing preventive
detention orders. The Court explained that the Board should not only analyse the subjective
satisfaction of the detaining authority but also check...
(/articles/reviewing-the-role-of-an-advisory-board-under-preventive-detention-law-259619)

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6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

Two Finger Test: A Bain To Women's Dignity

“The use of the two-finger test or the Per-Vaginum examination has no scientific base and is an
affront to a woman's dignity.” In May 2013, the use of the two-finger test was declared
unconstitutional by the apex court. Further, in March 2014, the Ministry of Health and Family
Welfare issued guidelines for the medico-legal care of sexual...
(/articles/two-finger-test-a-bain-to-womens-dignity-259616)

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No Fear As It Is All Numbers - Generally 1 Out 3 Candidates Pass The Advocates-On-Record

Examination
Drawing an analogy, from the one who has failed in an examination after properly preparing and
attempting it, should not be regarded as having no tales to tell and guide, I say it with conviction,
even after securing second (2nd) rank in the Advocates-on-Record Examination in the year 2023,
that similarly, the experience of a topper should not be...
(/articles/advocates-on-record-examination-supreme-court-259611)

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6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

Powers Of The DRT To Condone Delays In Filing Applications Under Section 17; A Question Put To
Bed?
Section 17 of the Securitization and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 ['SARFAESI Act' or 'the Act'] provides for the borrower of a secured loan
remedy to challenge any action taken by a creditor against his property by filing a Securitisation
Application ['SA']. The provision prescribes a ...
(/articles/powers-drt-condone-delays-filing-applications-section-17-259460)

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6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

Should We Leave Ensuring Fundamental Right To Mere Faith?

The verdict of the Supreme Court in Writ Petition (Civil) No. 434 OF 2023, Association of Democrati
Rights v. Election Commission of India, raises more questions than it answers, especially regarding
the technological operation of the Electoral Voting machines. It is very heartening that the Court ha
reiterated that it is the...
(/articles/critical-analysis-of-supreme-court-judgment-electoral-voting-machines-ensuring-voter-rights-
and-technological-transparency-259279)

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6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

Revisional Jurisdiction Of Criminal Courts: Constricted?

Many a time, criminal courts pronounce orders which may have a patent defect or any error of law.
In such a scenario, an aggrieved party looks for answers to such orders and this is why, the
legislature in its wisdom, has prescribed a remedy to set right a defective order in the form of
revision, under the Code of Criminal Procedure, 1973 (CrPC,...
(/articles/understanding-revisional-jurisdiction-of-criminal-courts-crpc-and-bnss-258906)

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6/6/24, 6:39 PM Fate Of Unpaid Tax Liability Under The Insolvency And Bankruptcy Code

Victim: The Conundrum Over Definition

Criminal justice systems around the globe exist to safeguard the interest of society as a whole
where states act Parens Patriae. In our country the criminal justice system criminal justice system
often focuses on the accused's rights and procedural formalities surrounding the linchpins of
criminal justice systems viz the Court and investigating...
(/articles/victim-definition-criminal-justice-system-bhartiya-nagrik-suraksha-sanhita-2023-reforms-
258907)

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