# In the matter of Padmaadevi Sugars Ltd. IA(IB)C-815(CHE)-2021 in CP(IB)-768(HE)-2018

> Read the full IBC case summary for In the matter of Padmaadevi Sugars Ltd. IA(IB)C-815(CHE)-2021 in CP(IB)-768(HE)-2018. NCLT judgment dated 2022-04-25.…

- **Court:** NCLT
- **Order date:** 25 Apr 2022
- **Citation:** TCN-2022-NCLT-04916
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/padmaadevi-sugars-ltd-iaibc-815che-2021-in-cpib-768he-2018-b4dd2892

## Summary

### Background

The Liquidator of the Corporate Debtor filed an application seeking removal of attachments on the Corporate Debtor's immovable properties by the GST & Central Excise authorities to facilitate the liquidation process, arguing that the tax liabilities are operational debts and IBC provisions override other enactments.

## Facts

The Corporate Debtor, M/s. Padmaadevi Sugars Limited, was ordered for liquidation by the Adjudicating Authority on April 20, 2021, and Mr. C. Ramasubramaniam was appointed as the Liquidator. The Liquidator subsequently informed statutory authorities, including the respondents, about the initiation of the liquidation process and requested them to submit their claims in Form G. However, the 1st and 2nd Respondents did not submit any claims.

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## Issues and analysis

### Issue 1: Whether the attachment on the immovable properties of the Corporate Debtor by the 1st and 2nd…

**Ratio:** Service Tax and Excise duties do not fall under the category of a Secured financial debt,…

**Reasoning:** The court observed that the Central Excise Act and Finance Act, 1994, and the IBC, 2016,…

**Interpretation:** The court interpreted **Section 36(3)(b)** of the IBC to mean that encumbered…

**Application:** Since the tax dues are not secured financial debts, the 1st and 2nd Respondents…

## Parties

- **Judges:** S. Ramath…; Anil Ku…
- **Advocates:** For Applicant: S.…

## Timeline

- **June 22, 2018 — Request for En…**: The 1st Respondent requested the 4th Respondent to create an encumbrance over the…
- **June 29, 2018 — Property Att…**: Immovable properties of the Corporate Debtor…

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