S. RAJENDRAN vs. THE DEPUTY COMMISSIONER OF INCOME TAX (BENAMI PROHIBITION)

C.A. No.-007140 - 2022Supreme Court2026 INSC 18724 February 2026Bench: HON'BLE MR. JUSTICE PAMIDIGHANTAM SRI NARASIMHA33 pages
For Petitioner: SHIVENDRA SINGHFor Respondent: RAJ BAHADUR YADAV
AI SummaryDismissed

What did the Supreme Court hold?

The Supreme Court upheld the NCLT and NCLAT's decisions, stating that orders under the Benami Act cannot be questioned before authorities under the Insolvency and Bankruptcy Code (IBC). The IBC cannot be used to bypass or override proceedings under special statutes like the Benami Act.

What were the facts?

The Supreme Court heard appeals concerning liquidators challenging provisional attachment orders under the Benami Act. The NCLT and NCLAT had previously held that they lacked jurisdiction to entertain such challenges, directing parties to the Benami Act's statutory forums.

What were the issues?

Whether the National Company Law Tribunal (NCLT) has jurisdiction to entertain challenges to attachment orders passed under the Prohibition of Benami Property Transactions Act, 1988, when the corporate debtor is undergoing insolvency proceedings.

Which sections of the Income-tax Act were involved?

Section 24,Section 26,Section 60(5),Section 14,Section 36,Section 32A

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Cases cited in this judgment(8)Show list

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Cause title — parties, addresses and appearances
2026 INSC 187 1 REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 7140 of 2022 S. RAJENDRAN ….APPELLANT(S) VERSUS THE DEPUTY COMMISSIONER OF INCOME TAX (BENAMI PROHIBITION) & ORS.….RESPONDENT(S) WITH CIVIL APPEAL NO. 6971 OF 2025 WITH CIVIL APPEAL NO. 6661 OF 2023 WITH CIVIL APPEAL NO. 6662 OF 2023

J U D G M E N T

1.

The present batch of appeals arises out of the impugned judgments and orders dated 18.08.2022 and 13.03.2023 passed by the National Company Law Appellate Tribunal, Chennai bench (hereinafter referred to as “NCLAT”). By the said impugned orders, the NCLAT declined to interfere with the decision of the National Company Law Tribunal (hereinafter referred to as “NCLT”) and refused to adjudicate the appellant- liquidators' applications challenging the provisional attachment 2 orders passed by the authorities under the Prohibition of Benami Property Transactions Act, 1988, (“Benami Act”), holding that the NCLT lacks juri iction to entertain such challenges and that the remedy

The order continues below.

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