Commercial Tax Department Vs Shailendra Ajmera & Anr. (NCLAT Delhi)
The present appeal was filed by the Commercial Tax Department (CTD) challenging the order dated 18.10.2023 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, which had approved a resolution plan under Section 30(6) of the Insolvency and Bankruptcy Code. The primary grievance of the appellant was that its statutory dues under Section 33 of the MPVAT Act, 2002 created a charge over the assets of the corporate debtor, and therefore, it ought to have been treated as a secured creditor instead of being classified as an operational creditor in the resolution plan.
Read SC Judgment in this case: SC Dismisses Appeal Due to 253-Day Delay Under IBC Limitation Rules
The respondent opposed the appeal, relying on a prior judgment of the Appellate Tribunal in a similar matter where the CTD’s claim to secured creditor status had been rejected. The Tribunal noted that there was no dispute regarding the facts and that the central issue was whether the appellant could be treated as a secured creditor based on Section 33 of the MPVAT Act.
The Tribunal examined Section 33 of the MPVAT Act, which provides that tax dues shall be a first charge on the property of the dealer, subject to provisions of the Companies Act. It also considered earlier judgments interpreting similar provisions, including comparisons with Section 48 of the Gujarat VAT Act and Section 37 of the Maharashtra VAT Act. The Tribunal observed that such provisions are subject to overriding provisions in central laws.
