# In the matter of Talwalkars Better Value Fitness Ltd.

> NCLT judgment dated 2024-07-19. Citation: TCN-2024-NCLT-00980. The case involves an appeal filed by Kolkata Municipal Corporation against the liquidator's…

- **Court:** NCLT
- **Order date:** 19 Jul 2024
- **Citation:** TCN-2024-NCLT-00980
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/talwalkars-better-value-fitness-ltd-0f7b99e2

## Summary

### Background

The case involves an appeal filed by Kolkata Municipal Corporation against the liquidator's decision to partially reject their claim in the liquidation process of Talwalkars Better Value Fitness Limited. The corporation claimed to be a secured creditor based on a first charge on the property under the Kolkata Municipal Corporation Act, 1980, seeking the tribunal's intervention to set aside the liquidator's decision and direct the liquidator to admit their entire claim. The corporate insolvency resolution process (CIRP) was initiated by Axis Bank Limited, leading to a liquidation order due to the absence of resolution plans.

## Facts

Axis Bank Limited initiated Corporate Insolvency Resolution Process (CIRP) against Talwalkars Better Value Fitness Limited. Saurabh Kumar Tikmani was appointed as the Interim Resolution Professional (IRP) and later confirmed as the Resolution Professional (RP). Due to the absence of resolution plans, the Committee of Creditors (CoC) resolved to initiate liquidation. The tribunal passed a liquidation order on 2022-04-28. Kolkata Municipal Corporation (KMC) claimed outstanding property tax of INR 47,77,358 as of 2022-03-22, with a balance of INR 30,28,233.91 remaining unpaid after partial payments. As of the Liquidation Commencement Date, the outstanding property tax was INR 51,72,528. KMC filed Form C claiming INR 51,72,528, divided into principal, interest, and

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## Issues and analysis

### Issue 1: Whether the Kolkata Municipal Corporation (KMC) should be treated as a secured creditor in the …

**Ratio:** The legal principle applied is that claims in the nature of crown debts, such as property

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**Reasoning:** The tribunal reasoned that while KMC claimed a first charge on the property under Section

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**Interpretation:** The interpretation involves understanding the relationship between state laws

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Appellants:** Kolkata Municipal…
- **Respondents:** Talwalkars Better…; Gajesh Labhchand…

## Timeline

- **2021-01-11 — CIRP Init…**: Tribunal order initiating Corporate Insolvency Resolution Process (CIRP) of the Corporate…
- **2021-01-18 — Corrigendum…**: Corrigendum order related…

## 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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