# In the matter of Department of State Tax Through the Deputy Commissioner of State Tax vs. Apollo Soyuz Electrical Pvt. Ltd.

> NCLAT judgment dated 2023-07-11. Citation: TCN-2023-NCLAT-00387. The Department of State Tax, through the Deputy Commissioner of State Tax, filed an appeal…

- **Court:** NCLAT
- **Order date:** 11 Jul 2023
- **Citation:** TCN-2023-NCLAT-00387
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/department-of-state-tax-through-the-deputy-commissioner-of-state-tax-vs-apollo-s-195a09f5

## Summary

### Background

The Department of State Tax, through the Deputy Commissioner of State Tax, filed an appeal against an order dated 13.04.2023, by which the Adjudicating Authority approved the Resolution Plan. The Appellant, an Operational Creditor, claimed that the amount allocated to them in the plan was less than 1% (0.59%) and that they should have been treated as a Secured Creditor. The Respondent refuted this claim, arguing that the Appellant had filed a claim as an Operational Creditor.

## Facts

The Department of State Tax, acting through the Deputy Commissioner of State Tax, initiated an appeal against the approval of a Resolution Plan by the Adjudicating Authority. The Department of State Tax, in its capacity as an Operational Creditor, argued that the allocation of funds to them under the Resolution Plan was less than 1% (specifically, 0.59%) of the total amount. They contended that they should have been classified and treated as a Secured Creditor. The Respondent refuted this claim, asserting that the Appellant had initially filed their claim as an Operational Creditor. The Tribunal considered a previous case involving similar issues, namely "Department of State Tax, Through the Dy. Commissioner of State Tax vs. Zicom Saas Pvt. Ltd. & Anr.",

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## Issues and analysis

### Issue 1: Whether the Appellant, an Operational Creditor, should have been treated as a Secured Creditor …

**Ratio:** An operational creditor cannot be treated as a secured creditor if they have filed their

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**Reasoning:** The Tribunal relied on its previous judgment in "Department of State Tax, Through

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**Interpretation:** This issue concerns the classification of creditors under the IBC and the

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**Application:** In this case, the Appellant filed their claim as an Operational Creditor.

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Department of…
- **Respondents:** Apollo Soyuz…
- **Advocates:** Shwetal S…; Malak B…

## Timeline

- **2023-04-13 — Order Da…**: Order by the Adjudicating Authority…
- **2023-07-11 — Hearing…**: Heard learned counsel…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 30(2) — Submission of resolution plan](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-30)

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