2022 (12) TMI 1592

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....ngs were pending visa-vis the Petitioner before the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016 (IBC Code). 2. The contention of the Petitioner has been that as long as the demands raised against the Petitioner pertain to periods prior to the commencement of the insolvency proceedings, those demands can no longer be enforced against the Petitioner. In support of such contention, reliance is placed on the following observations of the Supreme Court of India in Ghanashyam Mishra & Sons Private Limited v. Edelweiss Asset Reconstruction Company Limited 2021 SCC OnLine SC 313: "93. As discussed hereinabove, one of the principal objects of I&B Code is providing for revival of the corporate debto....

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....ms. If that is permitted, the very calculations on the basis of which the resolution applicant submits its plans would go haywire and the plan would be unworkable. 94. We have no hesitation to say that the words "other stakeholders" would squarely cover the Central Government, any State Government or any local authorities. The legislature noticing that on account of obvious omission certain tax authorities were not abiding by the mandate of the I&B Code and continuing with the proceedings, has brought out the 2019 Amendment so as to cure the said mischief. We therefore hold that the 2019 Amendment is declaratory and clarificatory in nature and therefore retrospective in operation. 95. There is another reason which persuade....

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....g in force and payable to the Central Government, any State Government or any local authority. 98. It is a cardinal principle of law that a statute has to be read as a whole. Harmonious construction of clause (10) of Section 3 of the I&B Code read with clauses (20) and (21) of Section 5 thereof would reveal that even a claim in respect of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authority would come within the ambit of "operational debt". The Central Government, any State Government or any local authority to whom an operational debt is owed would come within the ambit of "operational creditor" as defined under clause (20) of Section 5 of the I&B ....