STATE TAX OFFICER (1) Vs. RAINBOW PAPERS LIMITED

JUDGEMENT

(1.) These appeals under Sec. 62 of the Insolvency and Bankruptcy Code, 2016, hereinafter referred to as 'IBC', is against a judgment and order dtd. 19/12/2019, passed by the National Company Law Appellate Tribunal (NCLAT) dismissing Company Appeal (AT)(Insolvency) No. 404 of 2019 filed by the Appellant, against an order dtd. 27/2/2019 of the Adjudicating Authority, rejecting the application being I.A No.224/271/272/337 of 2018 and P-01 of 2019 in C.P. No. (IB) 88/9/NCLT/AHM/2017 filed by the appellants and holding that the Government cannot claim first charge over the property of the Corporate Debtor, as Sec. 48 of the Gujarat Value Added Tax, 2003, hereinafter referred to as the "GVAT Act", which provides for first charge on the property of a dealer in respect of any amount payable by the dealer on account of tax, interest, penalty etc. under the said GVAT Act, cannot prevail over Sec. 53 of the IBC.

(2.) The short question raised by the appellant in this appeal is, whether the provisions of the IBC and, in particular, Sec. 53 thereof, overrides Sec. 48 of the GVAT Act which is set out herein below for convenience:-

(3.) The respondent, a company within the meaning of the Companies Act, 2013 is engaged in the business of manufacture and sale of Crafts and Oars within and outside the State of Gujarat since 16/4/1990.