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2022 (1) TMI 870 - AT - Insolvency and BankruptcyApproval of Resolution Plan - statutory dues (tax liability) - difference made in the Code with regard to statutory dues and other claims (Operational Creditors) pursuant to a contract or not - any prior approval for extinguishing statutory dues is required or not - wisdom of the COC can be interfered with or not - COC has complied with the rules and regulations of the Code or not - Section 31 of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- The Appellant being Government of India and the statutory dues payable to the Central Government is covered under ‘Operational Debt’ as defined in Section 5(21) of the Code, 2016 therefore, the Appellant fall under the category of Operational Creditor and its statutory dues fall under the category of Operational Debt. Therefore, for all the purposes the claim of the Appellant come within the definition of Section 5 of Sub Section 21 of the I&B Code, 2016. As stated supra, the claim of the Appellant is an Operational Debt and for all purposes the I&B Code, 2016 shall only apply. There is no special treatment or category made separately for such dues and the claim of the Appellant are to be treated as Operational Debt. - In view of the settled law, there is no special treatment that can be accorded to statutory dues under the scheme of the I&B Code. Statutory dues stand on different footing than the Operational Creditors, whose claims have arisen pursuant to a contract - HELD THAT:- In the present case, the Committee of Creditors has complied with all the Rules and Regulations and the plan has been Approved by the Adjudicating Authority by 100% of voting in the 8th Committee of Creditors Meeting held on 06.12.2019. From the mandatory contents of the Resolution Plan, it is evident that the rules and regulations and Provisions of Law has been followed by the Committee of Creditors - having complied with all the rules and regulations the Adjudicating Authority rightly approved the plan of the Successful Resolution Applicant. In the Order of the Adjudicating Authority clearly states that the same shall be binding on the Corporate Debtor, its employees, members, creditors, including the Central Government, State Governments, Local Authority, Guarantors and other Stakeholders. In pursuance of the approved Resolution Plan by the Adjudicating Authority it is evident that the Appellant was paid a sum of ₹ 1 Crore towards its dues and there is no denial from the Appellant with regard to payment of ₹ 1 Crore - it is also evident that the Appellant was paid to the extent of 36.30% of the amount claimed by the Appellant. There are no infirmity or irregularity in the order passed by the Adjudicating Authority which is impugned before this Tribunal - appeal dismissed.
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