Resolution plan allocation upheld where tax claim was contingent and secured operational creditor status was not established.

The Income Tax Department's claim in the resolution plan was treated as a contingent liability because the assessment order was under appeal, and its demand for a higher allocation was not accepted. The tribunal found that the allocation made to the operational creditor was not shown to be below the amount payable in liquidation, so the plan did not require interference on that ground. The claim to secured creditor status was rejected because no basis was established for treating the claimant as a secured operational creditor. The allocation under the approved resolution plan was therefore upheld.

---

---

Issues: Whether the Income Tax Department was entitled to a higher allocation in the approved resolution plan on the basis of its claim and alleged secured operational creditor status.

Analysis: The claim was admitted for the full amount but was treated as a contingent liability because the assessment order was under appeal. The allocation of Rs. 5 lakhs to an operational creditor was found not to be shown as less than the amount payable in liquidation. The claim to secured creditor status was rejected as no basis was established for treating the appellant as a secured operational creditor.

Conclusion: The allocation under the resolution plan was upheld and no interference was warranted.

---