The IBBI rightly clarified that the Code and the Regulations do not envisage obtaining a 'no objection' or 'no dues' certificate from the Income Tax department in the voluntary liquidation process. What the Code expressly expects from creditors is to submit their claim in a time-bound manner. If the claim is not submitted, it shall stand extinguished.
We believe that the whole crux of the Code is a time-bound process and maximizing the value of assets of interested persons. With that intent in mind, provisions of the Code set out an explicit process to deal with the liquidation of a corporate person. We have witnessed that the process of applying and obtaining a 'no objection' or 'no dues' certificate from the Income Tax department consumes substantial time. This process defeats the objective of time-bound completion under the Code.
Nexdigm has voiced this concern to the IBBI through liquidators/ Insolvency Professional Agencies. We have argued this before the Hon'ble NCLT in various voluntary liquidation cases, and in many instances, the Hon'ble NCLT were pleased to agree with this submission.