Senior Advocate Arvind Datar, appearing for the appellant-liquidator, contended that by submitting claims under Section 38 of the IBC, the respondent had elected to subject its dues to be governed by the IBC.
The corporate debtor is and remains the owners of the goods, he added.
The respondent could not have exercised rights under the Customs Act, as the relevant statutory charge is expressly subordinate to the IBC, it was argued.
Additional Solicitor General (ASG) KM Nataraj, appearing for the respondents, argued that concerned goods were never claimed after being imported, and abandoned without paying the necessary import levies.
The corporate debtor had never cleared bills of entry for part of the goods, and so the warehouse’s assets could not be claimed, the ASG argued.
Source: Barandbench
