KOCHI: The National Company Law Tribunal Kochi bench has ordered the GST authorities to pay a compensation of Rs 50,000 for violating the moratorium and raiding the company facing proceedings under the Bankruptcy Act. The order of the bench comprising judicial member P Mohanraj and technical member Sathyaranjan Prasad was given on a petition filed by K Eshwarapilla, who has been appointed as a resolution professional for insolvency proceedings at Mango Meadows in Kattururthi. It has also been clarified that GST will be able to recover the amount paid as compensation from the guilty officials. The documents seized by the GST authorities must be returned within a week. The notice issued by the GST authorities asking Eshwar Pillai to appear has been cancelled.

Eswara PillaI was appointed as a resolution professional for the insolvency proceedings last January. Under the IBC Act, a six-month moratorium on the institution's liabilities will be granted once action is initiated. The reason for the complaint was that the GST authorities raided and took action against the establishment during this period. The action of the Company Law Tribunal has been judged to be a violation of the law by conducting raids and seizing business records of companies proceeding under the IBC Act. The tribunal also allowed the petitioner to approach the Insolvency and Bankruptcy Board of India to take action against the culprits.