# In the matter of Anil Ltd.

> NCLT judgment dated 2023-10-31. Citation: TCN-2023-NCLT-00960. The case involves an application by the Commissioner of State Tax, Gujarat, seeking directions…

- **Court:** NCLT
- **Order date:** 31 Oct 2023
- **Citation:** TCN-2023-NCLT-00960
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/anil-ltd-8ac09c12

## Summary

### Background

The case involves an application by the Commissioner of State Tax, Gujarat, seeking directions to the liquidator of M/s Anil Ltd to treat the applicant as a secured creditor for assessment years 2013-14 to 2016-17. The corporate debtor, Anil Limited, was undergoing liquidation after the initiation of CIRP under the IBC, 2016. The applicant had filed claims for a substantial amount, but the liquidator only partially recognized the secured status, leading to the present dispute. The applicant also attached the properties of the corporate debtor during the moratorium period.

## Facts

The Commissioner of State Tax, Gujarat, filed an application seeking to be treated as a secured creditor in the liquidation of M/s Anil Ltd. The CIRP was initiated against Anil Limited, and a moratorium was declared on 23.08.2017. The applicant filed claims for assessment years 2013-14 to 2016-17, totaling Rs.1001,72,32,358. The liquidator partially accepted the claim as secured for Rs.42,99,15,943 and treated the remaining amount as unsecured. The applicant had attached the properties of the corporate debtor on 16.10.2018, during the moratorium period. The liquidator rejected the secured status for assessment orders issued for the period 1994-95 to 1997-98 under the Gujarat Sales Tax Act, 1969, and for assessments made during the moratorium period. The liquidator

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## Issues and analysis

### Issue 1: Whether the Commissioner of State Tax, Gujarat, can be considered a secured creditor under the IBC …

**Ratio:** The Hon'ble Supreme Court has emphasized that 'Government dues' are included in the lower

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**Reasoning:** The Tribunal considered the liquidator's decision to partially accept the secured status

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**Interpretation:** Section 53 of the IBC provides the 'waterfall mechanism' for the order of

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**Application:** The Tribunal applied the principles of Section 53 and the Supreme Court's

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## Parties

- **Judges:** Chitra Ha…; Velamur G Venkata…
- **Appellants:** The Commissioner…
- **Respondents:** Anil Li…; Ramchandra…

## Timeline

- **2017-08-23 — Moratorium D…**: Moratorium declared under Sec 14 of the…
- **2017-09-06 — Last Date for…**: Last date for submission…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60 — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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