# In the matter of Monnet Power Company Ltd.

> NCLT judgment dated 2025-05-02. Citation: TCN-2025-NCLT-00126. The case involves an application filed by the Joint Commissioner of Commercial Taxes & GST,…

- **Court:** NCLT
- **Order date:** 2 May 2025
- **Citation:** TCN-2025-NCLT-00126
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/monnet-power-company-ltd-9719e55f

## Summary

### Background

The case involves an application filed by the Joint Commissioner of Commercial Taxes & GST, Angul, Odisha, against the Liquidator of Monnet Power Company Limited. The applicant sought a direction from the NCLT to be treated as a 'Secured Creditor' for their claim of Rs. 80,10,13,103/- arising from unpaid tax dues under various Orissa tax statutes. The liquidator had admitted the claim but classified it as an 'Operational Debt'. The applicant argued that Section 55 of the Orissa Value Added Tax Act, 2004, and Section 11 of the Orissa Entry Tax Act, 1999, create a statutory charge, entitling them to be treated as a secured creditor. The respondent opposed this, stating that the assets had already been sold to Jindal Steel and Power Limited and the proceeds were being

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## Facts

Monnet Power Company Limited, the Corporate Debtor, was undergoing liquidation proceedings initiated by the National Company Law Tribunal, Mumbai Bench, following an order dated 2019-10-23. Navneet Kumar Gupta was appointed as the Liquidator. The Joint Commissioner of Commercial Taxes & GST, Angul, Odisha, filed a claim of Rs. 80,10,13,103/- with the Liquidator, arising from unpaid tax dues under various Orissa tax statutes, including the Orissa Value Added Tax Act, 2004, Orissa Entry Tax Act, 1999, and Central Sales Tax (Orissa) Rules, 1957. The Liquidator admitted the claim but classified it as an 'Operational Debt'. The assets of the Corporate Debtor were sold to Jindal Steel and Power Limited through an e-auction. The applicant contended that Section 55 of the

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## Issues and analysis

### Issue 1: Whether the Joint Commissioner of Commercial Taxes & GST can be treated as a 'Secured Creditor' …

**Ratio:** A charge created under a statute can create a security interest in favor of the statutory

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**Reasoning:** The NCLT reasoned that Section 3(30) and 3(31) of the IBC define 'Secured Creditor' and

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**Interpretation:** The term 'Secured Creditor' under the IBC is comprehensive and wide enough to

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**Application:** The NCLT applied the ratio from Rainbow Papers Ltd and the definitions in the

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## Parties

- **Judges:** Deep Chandr…; Banwari Lal…
- **Appellants:** JOINT COMMISSIONER…
- **Respondents:** Monnet Power…; NAVNEET KUMAR…

## Timeline

- **2019-10-23 — Liquidation…**: The National Company Law Tribunal, Mumbai Bench, passed an order initiating the…
- **2019-11-29 — Public Annou…**: The Respondent made a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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