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TMI Blog2021 (9) TMI 613X X X X Extracts X X X X X X X X Extracts X X X X ..... stion nos.IX, X and XI (i) Power of taxation is a sovereign power of the State to enable the State to raise money by taxation for adequate revenue to discharge the primary governmental functions and in order to enable to discharge such functions sufficiently, it must be in possession of necessary funds. This consideration emphasises the necessity and the wisdom of conceding to the State, the right to claim priority in respect of its tax dues. This purpose is met by Section 77 of the U.P. VAT Act. Therefore, the exercise of sovereign power by the State in its field of legislation, cannot be argued by the petitioners to have been taken away or overridden by 'the IBC'. An interpretation otherwise, would give absurd result. Relied par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, 1994. Therefore, the taxes as referred in IBC would mean only the taxes being levied under the Acts enacted by Parliament referable to entries either in List-I or in List-III and not the enactments referable to List-II, i.e. the State List. Therefore, any inclusion of dues of State taxes, i.e. The U.P. VAT Act and The Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007, in the resolution plan without express consent of the State of U.P., would be a nullity and not permissible even under the IBC. Therefore, the recovery of dues under the U.P. VAT Act and The U.P. Tax on Entry of Goods into Local Areas Act, 2007, against the petitioner, is neither covered by the resolution plan or the order of the adjudicating authority dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 be read as overriding the MCGM's right - indeed its public duty to control and regulate how its properties are to be dealt with. That exists in Sections 92 and 92A of the MMC Act. This court is of opinion that Section 238 could be of importance when the properties and assets are of a debtor and not when a third party like the MCGM is involved. Therefore, in the absence of approval in terms of Section 92 and 92A of the MMC Act, the adjudicating authority could not have overridden MCGM's objections and enabled the creation of a fresh interest in respect of its properties and lands. No doubt, the resolution plans talk of seeking MCGM's approval; they also acknowledge the liabilities of the corporate debtor; equally, however, there are propos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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