New Delhi: The National Company Law Appellate Tribunal (NCLAT) dismissed a petition from the state tax department for dues from Reliance Communications (RCom), noting it was based on an assessment made post the commencement of the insolvency resolution process.
The NCLAT’s two-member bench concurred with the previous ruling by the Mumbai bench of the National Company Law Tribunal (NCLT), which had denied the state tax department’s subsequent claim of Rs 6.10 crore.
The Corporate Insolvency Resolution Process (CIRP) for RCom began on June 22, 2019, with the state tax department lodging two claims.
The initial claim, submitted on July 24, 2019, was for Rs 94.97 lakh, and the latter, filed on November 15, 2021, was for Rs 6.10 crore, stemming from an assessment order dated August 30, 2021.
While the NCLT acknowledged the first claim, which preceded the CIRP initiation, it rejected the second claim, which was predicated on the 2021 assessment order.
The Committee of Creditors (CoC) for RCom ratified the plan on March 2, 2020, followed by a claim submission from the state tax department on November 15, 2021.
This order was subsequently contested by the state tax department at the National Company Law Appellate Tribunal (NCLAT), arguing that the NCLT should have accepted the full claim.
Nevertheless, NCLAT dismissed this contention, noting that the claim was lodged following the CoC’s plan approval. It concurred with NCLT’s stance that the delay in submitting the second claim is inexcusable.
“The Adjudicating Authority (NCLT) provided valid reasons, and we concur that a claim based on an assessment conducted after the commencement of CIRP should not have been considered,” stated the NCLAT bench, which included Chairperson Justice Ashok Bhushan and Member Arun Baroka.
“Therefore, we find no fault in the Adjudicating Authority’s decision to partially grant the application. The appeal lacks substance and is hereby dismissed,” they added.
