Tax Dues Not Secured Debt Under IBC – VAT First Charge Claim Rejected as IBC Prevails Over VAT Law

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...