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2020 (10) TMI 735 - Tri - Insolvency and BankruptcyLiquidation process - Priority of settlement of dues - Payment of dues of Applicant as Secured Creditors as provided under the provisions of Part II Chapter II of the Insolvency & Bankruptcy Code, 2016 - main contention in the application are that the Petitioner is claiming to be a secured statutory creditor in view of the provision of section 48 of the Gujarat Value Added Tax and accordingly they want to be considered as Secured Statutory Creditor in petition which is under CIRP - HELD THAT:- The dues of the Government, Central Government and/or State Government or any legal authority fall under the category of "Operational Debt". That apart, the applicant is claiming that in view of the provision of section 48 of Gujarat Value Added Tax, 2003, he may be treated as secured statutory creditor. While deciding the issue of "Operational Creditor" and "Financial Creditor", the Hon'ble Supreme Court observed in Swiss Ribbons Pvt. Ltd. & Anr. vs. Union of India & Ors. SWISS RIBBONS PVT. LTD. AND ANR. VERSUS UNION OF INDIA AND ORS. [2019 (1) TMI 1508 - SUPREME COURT] wherein it is, inter alia, observed that "an 'Operational Debt" would include a claim in respect of the provision of goods or service, including employment, or a debt in respect of payment of goods or services, including employment, or a debt in respect of payment of dues arising under any law and payable to the Government or any local authority. Statutory dues such as income tax, value added tax and other statutory dues arising out of law will arise only if the company/corporate debtor is operational and, therefore, such dues have a direct nexus with the company". Thus, any dues and services of the Government Departments are considered as "Operational Creditor". Under such circumstances, even if, the Applications are restored by condoning the delay, the very purposes for which the IAs have been filed are not going to succeed, as they fall under the category of Operational Creditor as per the provision of IBC - However, the Applicant/State Tax Officer-2 have liberty to put their claim as "Operational Creditor" before the RP - Application dismissed.
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