2019 (10) TMI 53

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.... by Mr. Sanyam Seth, Advocate. JUDGMENT SUDHANSU JYOTI MUKHOPADHAYA, J. This appeal has been preferred by the Appellant- 'RMS Employees Welfare Trust'- ('Resolution Applicant') against part of the impugned order dated 14th September, 2018, wherein the Adjudicating Authority (National Company Law Tribunal), Chandigarh Bench, Chandigarh, while approving the 'Resolution Plan' submitted by the Appellant observed as follows: "We find that in para C.4 of the minutes of the meeting of COC held on 23.03.2018 (Annexure Q of the petition), it is inter alia stated that no payment under the resolution plan is envisaged for Government dues. The matter relating to the waiver of Government dues, including waiver of MAT liability under Se....

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....e Bankruptcy Law Reform Committee' submitted in February, 2015. Reliance has also been placed on the 'Final Report of the Bankruptcy Law Reform Committee' submitted in November, 2015 and extracts of the 'Finance Bill, 2018' to suggest that the debt payable to the Central Government or the State Government or legal authority pursuant to existing law do not come within the meaning of 'Operational Debt'. 6. Similar issue fell for consideration before this Appellate Tribunal in "Pr. Director General of Income Tax (Admn. & TPS) v. M/s. Synergies Dooray Automotive Ltd. & Ors.─ Company Appeal (AT) (Insolvency) No. 205 of 2017 etc.", wherein this Appellate Tribunal held as follows:  "27. In "Swiss Ribbons Pvt. Ltd. & Anr. vs.....

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....' and 'services' including employment are required to keep the Company ('Corporate Debtor') operational as a going concern. If the Company ('Corporate Debtor') is operational and remains a going concern, only in such case, the statutory liability, such as payment of Income Tax, Value Added Tax etc., will arise. As the 'Income Tax', 'Value Added Tax' and other statutory dues arising out of the existing law, arises when the Company is operational, we hold such statutory dues has direct nexus with operation of the Company. For the said reason also, we hold that all statutory dues including 'Income Tax', 'Value Added Tax' etc. come within the meaning of 'Operational Debt'. 30. For the said very reason, we also hold that 'Income Tax Dep....