TMI Blog2021 (9) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... ffect of IBC - HELD THAT:- The provisions of Section 238 of the IBC cannot be read as overriding the provisions of the U.P. VAT Act including Section 77. Liability of an assessee/ dealer under the U.P. VAT Act and the U.P. Tax on Entry of Goods into the Local Areas Act, 2007 - HELD THAT:- Assessment followed by demand notice crystallises the liability of an assessee/ dealer under the U.P. VAT Act and the U.P. Tax on Entry of Goods into the Local Areas Act, 2007. Most of the demands against the petitioner is subsequent to the effective date, i.e. 15.05.2018 when the adjudicating authority passed the order under Section 31 of the IBC. Therefore, for the purposes of the present case, the relevant date would be when the assessment orders ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idden by 'the IBC'. An interpretation otherwise, would give absurd result. Relied paragraphs 15, 16, 28, 29, 30, 31, 32 and 33 of the judgment in the case of Jindal Stainless Ltd. Anr vs State Of Haryana Ors (supra). (ii) The Insolvency and Bankruptcy Code, 2016 legislated by Parliament, is referable to Entry-9 of List-III-Concurrent List of the 7th Schedule to the Constitution of India i.e. Bankruptcy and Insolvency . The U.P. VAT Act and The Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007 were enacted by the State Legislature within its exclusive field of legislation and are referable to Entries 52 and 54 of List-II - State List, as it then stood. Thus, these aforesaid two State Legislations have been legisla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, is neither covered by the resolution plan or the order of the adjudicating authority dated 15.05.2018 nor it is constitutionally permissible nor such dues can be said to have been extinguished under the IBC. (iv) The word first charge used in Section 77 of the U.P. VAT Act has to be understood and interpreted as per the scheme of the Act itself and not as per meaning of the word charge and the aforesaid word charge cannot be understood as property as per definition of the word charge in Section 3(4) of the IBC. The definition of the word charge in IBC shall relate to the subject matter of the IBC which cannot be read or borrowed for interpreting Section 77 of the U.P. VAT Act. Section 77 of the U.P. VAT Act, cannot be said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proval; they also acknowledge the liabilities of the corporate debtor; equally, however, there are proposals which envision the creation of charge or securities in respect of MCGM s properties. Nevertheless, the authorities under the Code could not have precluded the control that MCGM undoubtedly has, under law, to deal with its properties and the land in question which undeniably are public properties. The resolution plan therefore, would be a serious impediment to MCGM s independent plans to ensure that public health amenities are developed in the manner it chooses, and for which fresh approval under the MMC Act may be forthcoming for a separate scheme formulated by that corporation (MCGM). (vii) Thus, the provisions of Section 238 o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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