https://www.taxtmi.com/caselaws?id=771732 State tax dues under section 48 of the Gujarat Value Added Tax Act, 2003 were treated as a first charge on the dealer's property, so the State qualified as a secured creditor for purposes of the Insolvency and Bankruptcy Code, 2016; the earlier Supreme Court ruling in Rainbow Papers was followed, and the contrary line of argument was rejected. A resolution plan that made no provision for admitted statutory dues was held inconsistent with the Code, because commercial wisdom cannot validate a plan that is ex facie contrary to the statutory framework. The plan's treatment of the claim as nil was a material irregularity, and the approval was set aside. en-us Fri, 16 May 2025 00:00:00 +0530 Fri, 30 May 2025 08:55:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771732 State tax dues under section 48 of the Gujarat Value Added Tax Act, 2003 were treated as a first charge on the dealer's property, so the State qualified as a secured creditor for purposes of the Insolvency and Bankruptcy Code, 2016; the earlier Supreme Court ruling in Rainbow Papers was followed, and the contrary line of argument was rejected. A resolution plan that made no provision for admitted statutory dues was held inconsistent with the Code, because commercial wisdom cannot validate a plan that is ex facie contrary to the statutory framework. The plan's treatment of the claim as nil was a material irregularity, and the approval was set aside. Case-Laws IBC Fri, 16 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771732