Commercial Tax Department vs Mr. Sajjan Kumar Dokania & Ors

Commercial Tax Department ...Appellant

Versus

Sajjan Kumar Dokania & Ors. ...Respondents

Present: For Appellant: Mr. Shashwat Parihar, Mr. Mrinal Elker Mazumdar and Mr. Shashwat Anand, Advocates. For Respondents: Ms. Honey Satpal, Advocate for R-1. Ms. Arti Singh, Mr. Aakashdeep Singh Roda, Ms. Pooja Singh and Mr. B.P. Singh, Advocates for R- 2&3.

ORDER

23.01.2023: Heard learned counsel for the Appellant. This Appeal has

been filed against the order dated 09.09.2022 passed by the Adjudicating

Authority by which order the Resolution Plan submitted by the Resolution

Professional has been approved. The Appellant - Commercial Tax Department

has filed this Appeal challenging the said order. The brief facts of the case

which are necessary to be noticed for deciding the appeal are:

(i) The CIRP against the Corporate Debtor commenced by order

dated 04.12.2020.

(ii) Publication was made by the Resolution Professional on

08.12.2020. In pursuance of the publication claims were

Cont'd.../ 2

submitted which were verified and collated by the Resolution

Professional.

(iii) Form G was published on 17.02.2020 inviting Expression of

Interest and subsequently, in the CIRP four plans were received.

(iv) In 14th meeting of the CoC dated 25.08.2021, Resolution Plan of

M/s Sangeet Television Network Pvt. Ltd. was approved. However,

it appears that the Bank Guarantee was not furnished within

time, hence, the CoC set aside and cancelled the Resolution Plan.

(v) The Resolution Professional issued fresh Form G on 11.10.2021

and thereafter the in 22nd CoC meeting dated 07.12.2021, the

plan of MS Soya Industries in consortium with Mr. Sanjay Chpra

was approved with 98.28% votes. The plan did not propose any

payment to the Operational Creditors.

(vi) After the approval of the Resolution Plan by the CoC, the Appellant

has filed its claim on 01.06.2022 before the Resolution

Professional vide Form B. The Resolution Professional

communicated the Appellant that their claim cannot be

considered at this stage. On 09.09.2022, the Resolution Plan has

been approved by the Adjudicating Authority.

(vii) The Appellant filed an application before the Adjudicating

Authority challenging the rejection of the claim, which application

has also been rejected on 16.06.2022. The Adjudicating Authority

Company Appeal (AT) (Insolvency) No. 1412 of 2022 3

while rejecting the application on 16.06.2022 has observed that

the claims were reflected in the Information Memorandum. The

Adjudicating Authority also observed that the Resolution

Professional should have informed the Appellant.

2. Learned counsel for the Appellant challenging the approval of the

Resolution Plan contends that in view of the judgment of Hon'ble Supreme

Court in "Civil Appeal No. 1661 of 2020, State Tax Officer (1) vs. Rainbow

Papers Ltd.", the Appellant being Secured Creditor was entitled to be dealt

with as Secured Creditor and to be allocated amount as per Section 53 at par

with the Secured Financial Creditors. It is submitted that for the mere fact

that Appellant did not file its claim, Appellant shall not be disentitled from

distribution as Secured Creditor. It is submitted that the Appellant has filed

a claim on 01.06.2022, although by that time the CoC has already approved

the Resolution Plan, the plan was not approved by the Adjudicating Authority.

3. Learned counsel for the Respondent refuting the submissions of learned

counsel for the Appellant contends that Appellant having not filed any claim

within the time, there was no error committed in distribution as per the list of

creditors finalised and approved. It is submitted that even the claim was filed

by the Appellant in Form B and not filed as Secured Creditor. It is further

submitted that the judgment of the Hon'ble Supreme Court in "State Tax

Officer (1) vs. Rainbow Papers Ltd." relied by the Appellant cannot benefit

the Appellant since in the present case publication was issued on 08.12.2020

whereas the Hon'ble Supreme Court was dealing with a claim which was

Company Appeal (AT) (Insolvency) No. 1412 of 2022 4

received prior to notification amending the Regulation, 2016 dated

03.07.2018. It is submitted that the Resolution Applicant has already

implemented the plan and amounts have been disbursed and there are no

amount left in the kitty out of which claim of the Appellant can be considered.

4. We have considered the submissions of learned counsel for the parties

and perused the record.

5. From the facts brought on the record, there is no dispute that at the

time when claim was filed by the Appellant on 01.06.2022, the CoC has

already approved the Resolution Plan. The judgment of Hon'ble Supreme

Court in "State Tax Officer (1) vs. Rainbow Papers Ltd." was considering a

claim which were invited on 05.10.2017 which was much prior to amendment

in the Regulation, as has been noted in the judgment.

6. It is to be noted that in the facts of the present case, the plan approved

has also been implemented and the amount received has been disbursed to

the Financial Creditors and other claimants as per the Resolution Plan. The

submission of learned counsel for the Appellant that the Appellant being a

Secured Creditor as per the law laid down by the Hon'ble Supreme Court in

"State Tax Officer (1) vs. Rainbow Papers Ltd." he ought to have been

allocated amount as per Section 53 at par with the Secured Financial Creditors

cannot be accepted in the facts of the present case. When there is no claim

filed by the Appellant within time, no error has been committed by the

Adjudicating Authority in approving the Resolution Plan, which was approved

by the CoC much prior to filing of the claim by the Appellant. We, thus, are of

Company Appeal (AT) (Insolvency) No. 1412 of 2022 5

the view that no relief can be granted to the Appellant in the facts of the

present case, hence, we are not inclined to interfere with the order impugned.

Appeal is dismissed.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) Archana/nn

Company Appeal (AT) (Insolvency) No. 1412 of 2022