Case Law Details
State Tax Officer Vs Rainbow Papers Limited (Supreme Court of India)
Held that Section 48 of the GVAT Act is not contrary to or inconsistent with Section 53 of the IBC. U/s. 53(1)(b)(ii), the debts owed to a secured creditor, which would include the State under the GVAT Act. Accordingly, the Government can claim first charge over the property of the Corporate Debtor
Facts-
These appeal against the judgement and order passed by NCLAT dismissing the appeal of the appellants holding that the Government cannot claim first charge over the property of the Corporate Debtor as section 48 of the Gujarat Value Added Tax, 2003 which provides for first charge on the property of a dealer in respect of any amount payable by the dealer on account of tax, interest, penalty etc. under the said GVAT Act, cannot prevail over Section 53 of the IBC.
Conclusion-
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