2022 (6) TMI 1047 - Tri - Insolvency and Bankruptcy

Tribunal deems petition for pre-effective date claims extinguishment infructuous, directs fresh claims for post-effective date dues.

The Tribunal deemed the petition for extinguishment of pre-effective date claims as infructuous due to the Government's exemption of liabilities for ... Seeking extinguishment of all the claims made against the Applicant - period prior to the effective date i.e. 20th September, 2018 - requesting the Respondents to file fresh claims and dues payable to the Transport Department Commissioner of Transport, Guwahati, Assam - Section 60(5) of the Insolvency and Bankruptcy Code, 2016 - HELD THAT:- Since the outstanding liabilities of Road tax/ MV tax etc. prior to 20.09.2018 in respect of vehicles of the gardens under Assam Company India Limited registered in the offices of the District Transport Officer of Dibrugarh, Sivsagar, Tinsukia and Nagaon have been exempted by the Government of Assam vide notification dated 30/05/2022, the Petition has now become infructuous. The Respondents are directed to issue fresh claims on the Applicant for the dues post the effective date i.e. 21st September, 2018 and onwards within 15 days from today - The Applicant is directed to pay the dues of the Respondents from 21/09/2018 onwards within fifteen days from the date of the receipt of the demand notice /letter from the Respondents. Application disposed off. Issues involved:Petition for extinguishment of claims pre-effective date under Insolvency and Bankruptcy Code, 2016.Detailed Analysis:1. Background and Petition for Extinguishment of Claims:The Applicant, a Corporate Debtor, filed a petition under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 seeking to extinguish all claims made against them prior to the effective date of 20th September, 2018. The Applicant specifically requested the Respondents to file fresh claims and dues payable to the Transport Department Commissioner of Transport, Guwahati, Assam from 21st September, 2018 onwards.2. Submission by the Applicant/Corporate Debtor:The Applicant detailed the history of the case, including the initiation of the Corporate Insolvency Resolution Process (CIRP), the acceptance of a Resolution Plan by the Committee of Creditors, and the subsequent approval by the Tribunal. The Resolution Plan explicitly stated that claims prior to the effective date would be extinguished. Despite multiple requests by the Applicant, the Respondents failed to respond or take action to extinguish the pre-effective date claims.3. Prayers for Relief by the Applicant:The Applicant sought various reliefs, including directing the Respondents to waive pre-effective date taxes and dues, issue fresh claims for post-effective date dues, refrain from coercive actions, and accept current legitimate dues post the effective date.4. Submission by Respondent No. 1:Respondent No. 1 submitted that the Governor of Assam had exempted outstanding liabilities of Road Tax/MV tax prior to 20.09.2018 for vehicles of the gardens under Assam Company India Limited. As such, they requested the Tribunal to close the petition as the outstanding liabilities had been exempted by the Government.5. Tribunal's Decision and Orders:After hearing both parties and examining the submissions, the Tribunal noted the Government's exemption of pre-effective date liabilities for vehicles of the gardens under Assam Company India Limited. Consequently, the petition was deemed infructuous. The Respondents were directed to issue fresh claims for post-effective date dues within 15 days, and the Applicant was instructed to pay these dues promptly upon receipt of the demand notice.6. Conclusion:The Tribunal disposed of the petition with the above directions, emphasizing the exemption of pre-effective date liabilities and the need for prompt payment of post-effective date dues by the Applicant.This detailed analysis encapsulates the key aspects and outcomes of the judgment delivered by the National Company Law Tribunal, Guwahati Bench, regarding the petition for extinguishment of pre-effective date claims under the Insolvency and Bankruptcy Code, 2016.