Kolkata Municipal Corporation Vs Gajesh Labhchand Jain (NCLAT Delhi)
This appeal was filed by the Kolkata Municipal Corporation (the appellant) challenging the order dated 19 July 2024 passed by the Adjudicating Authority (NCLT, Mumbai Bench, Court IV) in an appeal under Section 42 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Adjudicating Authority had partly allowed the earlier appeal by directing admission of a quantified claim but rejected the appellant’s contention that it was a secured creditor. Aggrieved by the refusal to recognise it as a secured creditor, the appellant approached the Appellate Tribunal.
The dispute arose from unpaid property tax in respect of an asset of the corporate debtor situated within the municipal limits of Kolkata. Although part payment was made in 2018, substantial dues remained unpaid, leading to issuance of a warrant of distress. Subsequently, corporate insolvency resolution proceedings (CIRP) were initiated against the corporate debtor on 11 January 2021, followed by liquidation proceedings on 28 April 2022. After liquidation commenced, the municipal authority sealed the property, but was later directed by the Adjudicating Authority to de-seal it and file its claim before the liquidator. The appellant filed its claim in Form-C, which was partly rejected by the liquidator, who categorised the appellant as an unsecured operational creditor.
