Sri Pavana Keerthi Hotels India Private Limited Vs Commissioner (NCLT Hyderabad)
NCLT Hyderabad held that Greater Hyderabad Municipal Corporation cannot initiate recovery proceedings of property tax against the Corporate Debtor under the provisions of the GHMC act, post initiation of CIRP process and declaration of ‘Moratorium’ against the corporate debtor.
Facts- The Corporate Debtor was admitted into CIRP by this Tribunal vide order dated 11.04.2022 in a Petition filed by M/s. Pridhvi Asset Reconstruction and Securitisation Company Limited (Financial Creditor) and appointed the Applicant herein as Interim Resolution Professional (IRP) of the Corporate Debtor. Accordingly, the Applicant took control of the functioning of a hotel belonging to the Corporate Debtor.
During the CIRP, the Respondent Authority issued a demand notice dated 10.11.2022 to the Corporate Debtor. The Respondent Authority also informed the Corporate Debtor that the hotel is being run without obtaining/renewing the trade license for the past five years which is in violation of the rules and Regulations of GHMC as per section 521 of GHMC Act.
On pursuits by the resolution professional the earlier notices issued by the Respondent Authority in regard to the Hotel were provided and ascertained the details of the arrears of tax to be paid by the Corporate Debtor. As per the calculations made by the resolution professional, the total arrears of tax to be paid by the Corporate Debtor to the Respondent Authority stands at Rs.38,54,691/-. Out of the same, the arrears of Rs.12,24,704/- pertains to CIRP period and arrears of Rs.26,29,987/-pertains to pre-CIRP period.
