# In the matter of Texorange Corporation Limited

> NCLT judgment dated 2023-11-01. Citation: TCN-2023-NCLT-00913. The Assistant Commissioner of State Tax, Mumbai, filed an appeal under Section 42 of the…

- **Court:** NCLT
- **Order date:** 1 Nov 2023
- **Citation:** TCN-2023-NCLT-00913
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/texorange-corporation-limited-abace7e9

## Summary

### Background

The Assistant Commissioner of State Tax, Mumbai, filed an appeal under Section 42 of the Insolvency and Bankruptcy Code, 2016, seeking condonation of delay in filing a claim in the liquidation of Texorange Corporation Limited and a direction to the Liquidator to admit the claim. The Corporate Insolvency Resolution Process (CIRP) was initiated by Bank of Baroda, and Mr. Sudip Bhattacharya was appointed as the Interim Resolution Professional. The appellant filed claims for the period of 2008-09, 2014-15, 2015-16, and 2016-17, which were rejected by the liquidator.

## Facts

The Assistant Commissioner of State Tax, Mumbai, filed an appeal against the rejection of its claim in the liquidation of Texorange Corporation Limited. The CIRP was initiated by Bank of Baroda, and the appellant filed claims for tax dues for the period of 2008-09, 2014-15, 2015-16, and 2016-17. The liquidator rejected the claim, stating that it could not be treated as a secured creditor. The appellant argued that the delay in filing the claim was not intentional and relied on the Supreme Court's decision in State Tax Officer (1) vs Rainbow Papers Limited, contending that statutory dues qualify as secured creditors. The liquidation process commenced on 22.06.2023, and the appellant had filed claim in Form C, as applicable to the Liquidation process, on 3.4.2023. The

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## Issues and analysis

### Issue 1: Whether the delay in filing the …

**Ratio:** The court considered that the claim was filed before the commencement of liquidation,

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**Reasoning:** The court reasoned that since the claim was filed before the commencement of liquidation,

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**Interpretation:** The court interpreted that the relevant date for determining delay is the

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**Application:** The court applied this reasoning to the fact that the claim was filed on

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Department of…
- **Respondents:** Texorange…

## Timeline

- **2019-10-11 — CIRP Init…**: Corporate Insolvency Resolution Process (CIRP) was initiated on an application by M/s…
- **2019-10-16 — Public Annou…**: Public announcement published on…

## 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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