# In the matter of Asian Natural Resources (India) Ltd. Appeal No. IA No. 456-2018 in CP (IB) No. 19-7-NCLT-AHM-2017

> NCLT judgment dated 2020-03-20. Citation: TCN-2020-NCLT-01427. The State Tax Officer filed an appeal under Section 42 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 20 Mar 2020
- **Citation:** TCN-2020-NCLT-01427
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/asian-natural-resources-india-ltd-appeal-no-ia-no-456-2018-in-cp-ib-no-19-7-nclt-04f543c1

## Summary

### Background

The State Tax Officer filed an appeal under Section 42 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) challenging the rejection of their claim by the liquidator of Asian Natural Resources (India) Limited. The State Tax Officer sought to be recognized as a secured creditor, arguing that their dues should be prioritized under Section 48 of the Gujarat Value Added Tax Act, 2003. The liquidator classified the State Tax Officer as a statutory creditor, relying on Section 53 of the I&B Code, which outlines the waterfall mechanism for distributing assets in liquidation.

## Facts

Asian Natural Resources (India) Limited underwent liquidation proceedings. The State Tax Officer (1), Unit 20, Ahmedabad, filed a claim with the liquidator, Abhishek Nagori, seeking to be treated as a secured creditor based on Section 48 of the Gujarat Value Added Tax Act, 2003. The liquidator rejected the claim, classifying the State Tax Officer as a statutory creditor under Section 53 of the Insolvency and Bankruptcy Code (IBC), 2016. The State Tax Officer appealed this decision to the National Company Law Tribunal (NCLT), arguing that the Gujarat Value Added Tax Act grants a first charge on the corporate debtor's property. The respondent No.2, previously known as M/s Bhatia International Limited, was registered with the Commercial Tax Department, Gujarat State,

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## Issues and analysis

### Issue 1: Whether the State Tax Officer can be considered a secured creditor under the Insolvency and …

**Ratio:** The Insolvency and Bankruptcy Code (IBC), 2016, specifically Section 53, establishes a

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**Reasoning:** The NCLT reasoned that the IBC is a comprehensive code designed to address insolvency and

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**Interpretation:** The interpretation of the IBC's Section 53 and Section 238 is crucial. The NCLT

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**Application:** In this specific case, the NCLT applied the ratio by holding that even though

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## Parties

- **Judges:** Harihar Prakash…; Prasanta Kumar…
- **Appellants:** State Tax O…
- **Respondents:** Asian Natural…; Abhishek…

## Timeline

- **2018-02-09 — Order Da…**: Honorable NCLT-Ahmedabad Bench vide order dated 09.02.2018 appointed liquidator of M/s…
- **2018-08-06 — Reference Let…**: Letter NO. Sr/S.T.Ο. (1)/Unit-20/Recovery/B.No. 1507 dated 06-08-2018 and E-mail dated…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 42 — Appeal against the decision of liquidator](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-42)

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