# In the matter of Bhushan Power and Steel Limited vs. Municipal Corporation of Delhi & Anr. W.P.(C) 4321-2024 and CM APPL.17715-2024]

> HC judgment dated 2024-04-08. Citation: TCN-2024-HC-00106. Bhushan Power and Steel Limited filed a petition under Article 226 of the Constitution of India…

- **Court:** HC
- **Order date:** 8 Apr 2024
- **Citation:** TCN-2024-HC-00106
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/bhushan-power-and-steel-limited-vs-municipal-corporation-of-delhi-anr-wp-bf1d3e05

## Summary

### Background

Bhushan Power and Steel Limited filed a petition under Article 226 of the Constitution of India seeking a writ of Certiorari to quash the Common Assessment Order No. TAX/CNZ/2024.2426 dated 02.03.2024 issued by the Municipal Corporation of Delhi (MCD). The order demanded property tax for Flat Nos. 101-112, F-Block, International Trade Tower, Nehru Place, New Delhi-110019, specifically for Flat Nos. 109 to 112 owned by the petitioner. The petitioner also sought a writ of Mandamus to prevent the respondents from raising any demand for property tax on the said flats for the period prior to 26.03.2021, which the petitioner claims is the 'effective date' due to a resolution plan approved by NCLT and NCLAT. The petitioner underwent Corporate Insolvency Resolution Process

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## Facts

Bhushan Power and Steel Limited (the petitioner) underwent Corporate Insolvency Resolution Process (CIRP) in 2017. JSW Steel Ltd. submitted a resolution plan, which was approved by the Committee of Creditors under Section 30(4) of the Insolvency & Bankruptcy Code, 2016 (IBC). The National Company Law Tribunal (NCLT) approved the plan on 05.09.2019, and the National Company Law Appellate Tribunal (NCLAT) confirmed it on 17.02.2020. The resolution plan stipulated that all liabilities and obligations of the petitioner relating to outstanding government dues prior to the effective date of 26.03.2021 were written off. The Municipal Corporation of Delhi (MCD) issued a Common Assessment Order dated 02.03.2024, demanding property tax for Flat Nos. 101-112, F-Block,

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## Issues and analysis

### Issue 1: Whether the Municipal Corporation of Delhi (MCD) can demand property tax from Bhushan Power and …

**Ratio:** Section 31(1) of the IBC, as amended, stipulates that a resolution plan approved by the

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**Reasoning:** The court relied on the judgments in Essar Steel India Ltd. Committee of Creditors v.

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**Interpretation:** The interpretation of Section 31(1) of the IBC is that once a resolution plan

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**Application:** In this case, the MCD's claim for property tax dues for the period prior to

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## Parties

- **Judges:** SACHIN…
- **Respondents:** Bhushan Power &…; MUNICIPAL…
- **Other parties:** Kohi…

## Timeline

- **2017-01-01 — CIRP Init…**: Bhushan Power and Steel Limited underwent…
- **2019-09-05 — NCLT App…**: The National Company Law Tribunal (NCLT) approved the resolution plan submitted by JSW…

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