Madras High Court
CMA/3387/2019 of THE COMMISSIONER OF CUSTOMS(PREVENTIVE) Vs M/S.ORCHID HEALTH CARE on 7 October 2026
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 07-10-2026
CORAM
THE HON'BLE DR.JUSTICE ANITA SUMANTH
AND
THE HON'BLE MR.JUSTICE K.RAJASEKAR
CMA Nos. 3387 & 3388 of 2019
CNR:{HCMA010385052019} CNR:{HCMA010385062019}
AND
CMP Nos. 19935 & 19930 of 2019
The Commissioner Of Customs(Preventive)
No.1, Williams Road, Cantonment,
Trichy-620001.
..Appellant(s)
in both appeals
Vs
M/s.Orchid Health Care
B-3,4,11,12,13 And 14 Sipcot Industrial Estate, Irrungatukottai, Sriperumbudur, Kanchipuram - 602105
..Respondent(s)
in CMA No. 3387/19
M/s.Orchid Health Care
B-3,4,11 & 14 Sipcot Industrial Estate,
Irrungatukottai, Sriperumbudur,
Kanchipuram - 602105
..Respondent(s)
in CMA No. 3388/19
Prayer : Appeals filed under Section 35G of the Customs Act, 1962 against the Final Order Nos.40337 & 40338/2018 dated 19.01.2018 passed by the Hon’ble Customs, Excise and Service Tax Appellate Tribunal, Chennai.
(In both appeals)
For Appellant(s):
Mr.Rajendran Raghavan
For Respondent(s):
Mr.Raghavan Ramabadran
For M/s.Lakshmi Kumaran And Sridharan
Attorneys
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COMMON JUDGMENT
(Delivered by Dr.Anita Sumanth, J.) The challenge by the Department is to an order of the CESTAT for the period 01.04.2005 to 31.03.2010.
2. Mr.Raghavan circulates a copy of the Resolution Plan formulated by the National Company Law Tribunal in the case of the assessee. A copy of the same has been supplied to Mr.Rajendran Raghavan as well, who, on a perusal thereof accedes to the position that no claim has been made by the Central Excise Authorities qua the demand arising in the present matter.
3. The Resolution Plan was approved by the NCLT on 25.06.2019. On appeal by one of the creditors, the matter was remanded by the National Company Law Appellate Tribunal on 13.11.2019 and the remand order was taken up in appeal before the Supreme Court. By order dated 28.02.2020, in
Civil Appeal No. 9036 of 2019, the remand by the NCLAT was set aside and the Appeal was allowed in the following terms:- “Application for impleadment is dismissed as withdrawn. The impugned judgment dated 13.11.2019 has remitted the matter to the NCLT after a finding that under Section 30(2) of the Insolvency and Bankruptcy Code together with the principle of maximization of assets of the corporate debtor, a resolution plan which is lesser than liquidation value cannot be accepted. As a matter of law, this judgment has to be set aside in view of our recent judgment dated 22.01.2020 in Civil Appeal No. 4242 of 2019 entitled Maharashtra Seamless Limited vs. Padmanabhan Venkatesh & Ors. in which this Court has categorically held as under: “26. No provision in the Code or Regulations has been brought to our notice under which the bid of any Resolution Applicant has to match liquidation value arrived at in the manner provided in Clause 35 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016. This point has been dealt with in the case of Essar Steel (supra). We have quoted about the relevant passages from this judgment.” Accordingly, the appeal is allowed and the judgment of the NCLAT is set aside.”
4. In light of the finality accorded to the Resolution Plan by judgment of the Supreme Court in Ghanashyam Mishra and Sons Private Limited v Edelweiss Asset Reconstruction Company Limited1, and seeing as no claim has 1 (2021) 9 SCC 657
been put forth by the Central Excise Authorities, these appeals are dismissed, returning the substantial questions of law unanswered. No costs. Connected miscellaneous petitions are closed. (A.S.M, J.) (K.R.S, J.) 07-10-2026 Index: Yes/No Speaking order Neutral Citation: Yes ssm To
1. The Commissioner Of Customs (Preventive) No.1, Williams Road, Cantonment, Trichy-620001.
2. The Hon’ble Customs, Excise and Service Tax Appellate Tribunal, Chennai.
DR.ANITA SUMANTH, J. AND K.RAJASEKAR, J. ssm CMA Nos. 3387 & 3388 of 2019 07-10-2026