State Tax Officer Vs Premraj Ramratan Laddha & Ors (NCLAT Delhi)
NCLAT Delhi held that State Tax Department is secured creditor under section 53 of the Insolvency and Bankruptcy Code [IBC] hence resolution plan approved without considering the same is in violation of statutory provision.
Facts- M/s Harsh Foundry Fluxes & Alloys filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Twenty First Century Castings Pvt. Ltd. (Corporate Debtor) which was admitted on 16.01.2020.
The present appeal has been filed by the State Tax Officer, Gujarat because against its admitted claim no provision has been made for any payment to the Appellant though it is claimed that the Appellant is also a secured creditor. The Appellant has alleged that a sum of Rs. 11,70,47,801/-has accrued pertaining to assessment year 2009-11 and 2014-16 of the CD under the GVAT Act, 2003 and CST Act, therefore, a charge was created on the property of the CD by operation of law.
Conclusion- The Hon’ble Supreme Court has held that the CoC which might include financial institutions and other financial creditors cannot secure their own dues at the cost of statutory dues owed to any government or governmental authority or for that matter any other dues.
