J U D G M E N T

(Hybrid Mode)

[Per: Arun Baroka, Member (Technical)]

1.This is an Appeal under section 61 of the IBC 2016, Challenging the Order / Judgment dated 30.07.2024 passed by the National Company Law Tribunal, Ahmedabad Bench in Interlocutory Application No.742 (AHM) 2022 in CP (IB) No.473 of 2018, whereby the learned National Company Law Tribunal, Ahmedabad Bench, has allowed the application of the secured financial creditor of the CD-Gangotri Glazed Private Limited (Respondent No.2) and has directed the appellant to release the charge created by the appellant on the land situated at Morbi District (erstwhile Rajkot District), Sub- District –Morbi, Village- Dhuva, Revenue Survey No.130 paiki, land admeasuring 14678.80 sq. Mtrs, industrial purpose land (NA) along with construction thereon.

Submissions of the Appellant

2. The recovery of tax from the Corporate Debtor (CD) is due under the GVAT and CST Act for the Assessment Years 2010-11, 2011-12, 2012-13, which is prior to the initiation of the CIRP proceedings. Notices were being issued by the appellant for the assessment period of 01.04.2010 to 31.03.2011, 01.04.2011 to 31.03.2012 under Section 9(2) of the Central Sales Tax Act, 1956 read with Section 48 of the GVAT Act, 2003. Also notices were issued for the Assessment period of 01.04.2012 to 31.03.2013 under Section 9(2) of the Central Sales Tax Act, 1956 read with Section 48 of the GVAT Act, 2003.

3. Appellant had addressed a letter on 25.11.2016 to the Talati-cum- Mantri of Dhuva Village and Mamlatdar of Wankaner Taluka, that the tax are dues of the corporate debtor under the GVAT Act and CST Act, which is pending to the tune of Rs.4,33,26,447/- for the assessment year 2010-11 and for the assessment year to the tune of Rs.11,88,32,469/- with interest. On 17.03.2017 and 28.08.2018 the State Tax Officer once again had issued reminder letter to the Talati-cum-Mantri of Dhuva to put charge /attachment on the property of the corporate debtor. On 22.01.2019, 16.05.2019 and 20.08.2019, the State Tax Officer once again had addressed a letter to the Talati-cum-Mantri, Dhuva for attaching the property of the Corporate Debtor. In the village form No.2 also, the said above entries are reflected for attachment stating that the State Tax Officer had made an attachment on 26.08.2019.

4. Section 9 application came to be allowed on 27.01.2020 and IRP (Interim Resolution Professional) came to be appointed. Mr. Keyur J. Shah was appointed as main IRP. On 13.08.2020, the Resolution Professional of the Corporate debtor addressed a letter to the State Tax Officer requesting for withdrawal of the lien on the Bank Account of the HDFC Bank. On 2.11.2020, the Hon'ble NCLT Ahmedabad bench passed an order for liquidation in respect of the corporate debtor and appointed the RP as the liquidator of the corporate debtor. On 27.11.2020, the appellant addressed a letter to the RP submitting the claim of the State Tax Department along with all requisite documents and the assessment orders. On 28.11.2020, the appellant addressed a mail to the Resolution Professional to consider the State Tax Department as secured creditor and to consider the claim under the CST Act and the Gujarat Value Added Tax Act, 2003 and to register the State Tax Department claim, as they have the first charge over the assets of the defaulting assesse for the outstanding amount of Rs.31,97,71,210/-. On 07.12.2020, the State Tax Officer addressed a mail to the RP of the corporate debtor stating that the Bank’s attachment made on the corporate debtors account is much prior to the initiation of the CIRP proceedings. On 7.1.2021, the Resolution Professional addressed a mail to the State Tax Department stating that the claim of the State Tax Department is being accepted for Rs.31,94,24,427/- and they shall verify the claim based on the records which is being provided by the State Tax Department and accordingly, shall inform whether the revised admitted claim is being accepted or not. On