TaxTMI 
TaxTMI 
2019 (12) TMI 1400
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....to remove the attachment/charge on the properties in question as registered with the revenue department of the Government of Gujarat in accordance with the provisions of the Code and/or; c) Pass any such order to ensure that the applicant be able to enjoy the properties in question absolutely and without any encumbrance and/or; d) Pass any such order and or other further reliefs as the Hon'ble Tribunal deems fit and proper in the interest of justice." 2. It is submitted that the Respondent No. 1 company was ordered to be liquidated vide order dtd: 12.12.2017 passed by this Adjudicating Authority. Thereafter, RP Mr. Premraj Laddha was appointed as Liquidator under Section 34(1) of the IBC, 2016. Further, it is submitted that Respondent No. 2 is the authority of State Tax Dept., which has its attachment registered on the properties in question with the revenue dept. of the Government of Gujarat. Respondent No. 3 is the authority of the revenue department of the Government of Gujarat which has the power to remove the attachment registered on the properties in question. 3. Pursuant to the orders dated 12.12.2017 of this Bench, the liquidator made public anno....
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....over the properties in question being dues recoverable by the State Tax Dept., on order of the then Asst. Commissioner of Commercial Tax vide order No. 2012-13/1733/78 dated 05.06.2013. 6. It is submitted that the Applicant had repeatedly written to the Respondent No. 2 to withdraw the charge from the land revenue records and also Respondent No. 3 to remove/clear the said charge of sale tax dues from the land revenue records. However, the issue of removal of charge from the land revenue records remains unresolved. 7. It is submitted that as per Section 53 of the Code, the mechanism prescribed for distribution of proceeds from the sale of liquidation assets, the dues of the secured creditors rank prior to the dues of the Central and State Government and the sale consideration is to be distributed among all the creditors in the priority and proportion as stipulated in Section 53 of the Code. Therefore, it is submitted that the noting of State Tax Department will not have any effect over the titles to the properties in question, of the Corporate Debtor under liquidation, acquired by the Applicant through e-auction as per prescribed procedure under the Code. 8. It is submitted....
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....ruptcy Code, 2016. Further, it is also submitted that the Respondent No. 1 through its Liquidator has filed its affidavit in support of the stand taken by the Applicant that as per Section 53 read with Section 238 of the Code, the IBC, 2016 prevails over any other law and Applicant being the auction buyer of the properties in question should be able to enjoy it absolutely and without any encumbrances from any statutory authority. It is further submitted that the Respondent No. 2 has filed affidavit placing reliance on Section 48 of the Gujarat Value Added Tax, 2003 stating that by virtue of the outstanding dues of the company in liquidation, they have first charge on the properties in liquidation and in view of the provisions of Section 3(30) and 3(31) of the Code, they fall within the definition of secured creditor. It is further submitted that the submissions of the Respondent No. 2 cannot be upheld as Section 3(31) speaks of the transaction between the creditor and debtor, pursuant to which a charge is created on the properties of the borrower/debtor. However, in the present case, the Respondent No. 2 seeks to claim charge by virtue of Section 48 of the Gujarat Value Added Tax, ....
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....ion estate, which apparently has not been done by the Respondent No. 2. 13.2 It is submitted that there are no provisions under IBC, 2016, which stipulates acceptance of a belated claim by a RP. It is also submitted that the liquidator never accepted the claim of the appellant under Section 40 of the Code. ORDER 14. In this context, it is required to refer to the Section 53 of the Insolvency and Bankruptcy Code, 2016 on distribution of assets on liquidation which reads as under- "Distribution of assets: Section 53. (1) Notwithstanding anything to the contrary contained in any law enacted by the Parliament or any State Legislature for the time being in force, the proceeds from the sale of the liquidation assets shall be distributed in the following order of priority and within such period and in such manner as may be specified, namely:--(a) the insolvency resolution process costs and the liquidation costs paid in full; (b) the following debts which shall rank equally between and among the following:--(i) workmen's dues for the period of twenty-four months preceding the liquidation commencement date; and (ii) debts owed to a secured creditor in the event such secur....