https://www.taxtmi.com/caselaws?id=377217 Statutory dues such as income tax, value added tax and similar liabilities are treated as operational debt under the Insolvency and Bankruptcy Code because the definition extends to debts arising under law and payable to the Central Government, State Government or local authorities. The disjunctive use of "or" in the definition was given effect, and the dues were linked to the corporate debtor's operations as a going concern. Once those dues qualify as operational debt, the corresponding Government or local authority is an operational creditor. First-charge provisions under tax laws do not change that character. The appeals challenging approval of the resolution plans therefore failed. en-us Wed, 20 Mar 2019 00:00:00 +0530 Mon, 25 Mar 2019 17:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=377217 Statutory dues such as income tax, value added tax and similar liabilities are treated as operational debt under the Insolvency and Bankruptcy Code because the definition extends to debts arising under law and payable to the Central Government, State Government or local authorities. The disjunctive use of "or" in the definition was given effect, and the dues were linked to the corporate debtor's operations as a going concern. Once those dues qualify as operational debt, the corresponding Government or local authority is an operational creditor. First-charge provisions under tax laws do not change that character. The appeals challenging approval of the resolution plans therefore failed. Case-Laws Insolvency and Bankruptcy Wed, 20 Mar 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=377217