# Bank of Baroda vs. State Tax Officer & Ors.

> NCLAT judgment dated 2026-09-18. Citation: TCN-2026-NCLAT-00279. This case involves three consolidated appeals before the National Company Law Appellate…

- **Court:** NCLAT
- **Order date:** 18 Sept 2026
- **Citation:** TCN-2026-NCLAT-00279
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/bank-of-baroda-vs-state-tax-officer-ors-lliul

## Summary

### Background

This case involves three consolidated appeals before the National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, concerning the classification of a claim by the State Tax Officer. The primary appeal, CA (AT) (Ins.) No. 189 of 2026, was filed by Bank of Baroda, a secured financial creditor of Sunrise Ginning Private Limited (Corporate Debtor), challenging an order dated 01.09.2025 by the National Company Law Tribunal (NCLT), Ahmedabad Bench. The NCLT had partly allowed an application by the State Tax Officer, directing the Resolution Professional to treat the State Tax Officer as a “secured operational creditor” for its claim of Rs.3,84,70,060/-, arising from statutory dues (GVAT and CST) of the Corporate Debtor, to the extent of properties covered

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## Facts

Sunrise Ginning Private Limited (Corporate Debtor) is a private limited company incorporated under the Companies Act, 1956, engaged in buying and selling cotton bales, and registered under the Gujarat Value Added Tax Act, 2003 (GVAT Act) and the Central Sales Tax Act, 1956 (CST Act).

The State Tax Department determined tax dues for Assessment Year 2015-16, totaling Rs.3,84,70,060/-, which included principal tax (VAT: Rs.2,64,24,189/-, CST: Rs.7,77,616/-) and interest (Rs.1,12,68,255/-).

An assessment order was passed on 30.03.2021 by the State Tax Officer, Dhoraji, against which the Corporate Debtor filed a first appeal on 22.06.2021.

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## Issues and analysis

### Issue 1: Whether the State Tax Officer can be treated as a "secured creditor" in respect of its …

**Ratio:** A 'security interest' under Section 3(31) of the IBC, as clarified by the Insolvency and

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**Reasoning:** The NCLAT noted that the 2026 amendment to Section 3(31) explicitly clarifies that

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**Interpretation:** Section 3(31) of the IBC, after the 2026 amendment, is interpreted to strictly

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**Application:** Applying the amended Section 3(31), the statutory first charge under Section 48

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## Parties

- **Judges:** Indevar P…; Sharad Kumar…; +1 more
- **Respondents:** Sunrise Ginning…; State Tax O…; +3 more
- **Other parties:** Analysis co…; Committee of…; +2 more
- **Advocates:** Ashish…; Nikhil T…; +7 more

## Timeline

- **2021-03-30 — Assessment Ord…**: Assessment order for AY 2015-16 passed by the State Tax Officer, Dhoraji, against the…
- **2021-06-22 — First Appeal Filed by…**: Corporate Debtor filed a first appeal…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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