PATNA HIGHWAY PROJECTS LTD Vs. STATE OF BIHAR

JUDGEMENT

(1.) The petitioner; a Company registered under the Companies Act, 1956 is now subjected to a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (for brevity 'IBC'). In the two writ petitions, the petitioner challenge the demand raised under the Bihar Goods and Services Tax Act, 2017 (for brevity 'BGST Act') for the assessment years 2020-21 and 2022-23; as having been extinguished for reason of the State Tax Authorities not moving the National Company Law Tribunal (for brevity 'NCLT') for inclusion of their demand in the resolution plan, as a debt payable by the Company-a Corporate Debtor under the IBC.

(2.) Mr. Gopal Jain, learned Senior Counsel for the petitioner in his arguments laid thrust on the creditor driven regime as is brought out under the IBC. The Corporation Bank a Financial Creditor, as is distinguished from an Operational Creditor; which the State Government would have been if the claims were raised at the proper time, had moved the NCLT against the petitioner company styling itself as the Corporate Debtor. An Interim Resolution Professional was appointed and M/s Silver Point Luxemburg Platform (SARL) approached the Tribunal as a Resolution Applicant (RA) with a resolution plan to revive the petitioner company in terms of the IBC. The resolution plan placed before the Committee of Creditors was agreed to by a majority of 97% following which the Tribunal approved it on 10/5/2020. The petitioner's management was handed over to the R.A., and it was later to this, that notices were issued for assessment of tax for the subject assessment years.

(3.) The petitioner-company, taken over by the new management did not respond to the notices and the orders were passed ex parte. The petitioner unsuccessfully challenged both the orders in a First Appeal as provided under the BGST Act. The State Taxes Department insisted for payment of 20% of the balance amounts due, in addition to the 10% paid at the time of First Appeal, so as to keep in abeyance the demand, till the Appellate Tribunal is constituted under the BGST Act. It is at this point of time the petitioners approached this Court pointing out the CIRP having commenced and the State Taxes Department having not sought for inclusion of the debts in the resolution plan; by which the tax due stands extinguished.