# In the matter of Commercial Tax Department vs. Teena Saraswat Pandey & Anr.

> NCLAT judgment dated 2024-09-09. Citation: TCN-2024-NCLAT-00213. The case involves an appeal filed by the Commercial Tax Department against an order dated…

- **Court:** NCLAT
- **Order date:** 9 Sept 2024
- **Citation:** TCN-2024-NCLAT-00213
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/commercial-tax-department-vs-teena-saraswat-pandey-anr-c6535c3e

## Summary

### Background

The case involves an appeal filed by the Commercial Tax Department against an order dated 25.08.2022, where the department was treated as an unsecured creditor in the resolution plan of M/s Rajpal Abhikaran Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated against the Corporate Debtor (CD) after an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was filed by M/s Chandraudai Automobiles Pvt. Ltd. The Adjudicating Authority admitted the application. The appellant's claim of Rs. 12,61,57,345/-, filed vide Form B dated 29.07.2021, was not considered as a secured debt, which led to the appeal. The appellant relied on a Supreme Court decision in the case of State Tax Officer (1) Vs. Rainbow Papers Limited to argue that their

…

## Facts

M/s Chandraudai Automobiles Pvt. Ltd. initiated Corporate Insolvency Resolution Process (CIRP) against M/s Rajpal Abhikaran Pvt. Ltd. (Corporate Debtor) by filing an application under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was admitted by the Adjudicating Authority on 26.03.2021. Ms. Teena Saraswat was appointed as the Interim Resolution Professional (IRP). The IRP formed a Committee of Creditors (CoC) comprising several financial creditors, including State Bank of India (23.24% voting share) and Suraksha ARC (42.36% voting share). A resolution plan submitted by Agarwal Real City Pvt. Ltd. was approved by the CoC with 90.41% votes on 17.12.2021. The liquidation value and fair value of the Corporate Debtor were reported as Rs.

…

## Issues and analysis

### Issue 1: Whether the statutory demand of the Commercial Tax Department should be treated as a secured debt …

**Ratio:** The ratio is based on the interpretation of Section 48 of the GVAT Act and Section 33 of

…

**Reasoning:** The court reasoned that Section 33 of the MPVAT Act is subject to the provisions of

…

**Interpretation:** The interpretation involves determining whether the relevant provisions of the

…

**Application:** The court applied the reasoning to the specific facts of the case, noting that

…

## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…; +1 more
- **Appellants:** Commercial Tax…
- **Respondents:** Rajpal Abhikaran…; Teena Saraswat…

## Timeline

- **2021-03-26 — CIRP Init…**: Application under Section 9 of IBC…
- **2021-12-17 — Resolution Plan…**: Resolution plan submitted by Agarwal Real City Pvt. Ltd. approved by CoC with 90.41%…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/commercial-tax-department-vs-teena-saraswat-pandey-anr-c6535c3e