Department Of State Tax vs Reliance Naval And Engineering Limited ...
- CitationCompany Appeal (AT) (Insolvency) No. 172 of 2023
Ratio decidendi
The rule this decision rests on
The appeal is dismissed by following an earlier decision of this Tribunal in Company Appeal (AT) Ins. No. 246 of 2022, which is said to cover the same issues; the reasons for that earlier decision are not set out in this order. The only reasoning present is the adoption of that decision, so the ratio of this order is that the issue of whether a state tax department can claim secured-creditor status in a corporate insolvency resolution process is governed by the holding in Company Appeal (AT) Ins. No. 246 of 2022, and this order rests entirely on that holding without restating it.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Department of State Tax Through the Deputy Commissioner of State Tax ...Appellants
Versus Reliance Naval and Engineering Ltd. & Anr. ...Respondents
Present: For Appellant: Ms. Shwetal Shepal, Advocate For Respondent: Prachi Johri, Pranesh Rajamanicam, Advocates for R-1 Manmeet Singh, Anuragh Robin, Yasas Chandra Devarakonda, Advocates for R-2
ORDER
17.02.2023: Heard Learned Counsel for the Appellant as well as Learned
Counsel for the Respondent.
2. By this Appeal, the Appellant has challenged the Order dated 23.12.2022
by which Order the Adjudicating Authority has allowed the Application filed by
the Resolution Professional and approved the Resolution Plan.
3. The Appellant has filed a claim in the Corporate Insolvency Resolution
Process of Reliance Naval and Engineering Ltd. which claim was admitted by
Resolution Professional in the Plan. The Appellant has already been allocated
10.7% of the admitted claim. Learned Counsel for the Appellant submits that the 2
Department of State Tax ought to have been treated as secured creditors hence
the amount ought to have been accepted.
4. Learned Counsel for the Respondent submits that an Appeal filed by the
Department of State Tax being Company Appeal (AT) Ins. No. 246 of 2022 raising
same issues has already been decided by this Tribunal holding that Appellant
cannot claim as secured creditors.
5. We have considered the submissions of Learned Counsel for the parties
and have perused the record.
6. The issues raised in this Appeal are fully covered by the Judgment of this
Tribunal decided on 07.02.2023 in Company Appeal (AT) Ins. No. 246 of 2022.
Following the Judgement as noted above, this Appeal is also dismissed.
[Justice Ashok Bhushan] Chairperson
[Dr. Alok Srivastava] Member (Technical)
Basant/nn
Company Appeal (AT) Ins. No. 172 of 2023
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