Back
2025 Supreme(Online)(NCLT) 2598
NATIONAL COMPANY LAW TRIBUNAL
Smt. Madhu Sinha, Member (Judicial), Shri. Vinay Goel, Member (Technical)
M/s. Orma Marble Palace Private Limited – Appellant
Versus
The Tahsildar – Respondent
IA(IBC)/152/KOB/2022 | IBA/41/KOB/2020
For the Applicants: Mr. Rojit Zachairach
For the Respondents: Mr. Arun Chandy
Debt claims not included in an approved resolution plan under IBC are extinguished; jurisdiction of NCLT does not extend to government demand enforcement.
Headnote:(A) Kerala Building Tax Act, 1975 - Provisions of IBC, 2016 - The Applicant sought to quash communications regarding demand notices issued by the Tahsildar, asserting claims were extinguished post-approval of the resolution plan dated 23.12.2022. The resolution applicant contended the 1st Respondent failed to file claims before the Resolution Professional during the Corporate Insolvency Resolution Process (CIRP). Court held claimants must submit claims during CIRP and could not later enforce claims extinguished under IBC provisions post-approval of the resolution plan. (Paras 10, 13, 39, 40)
(B) Jurisdiction - The NCLT does not have jurisdiction to quash government demands under public law; instead, such matters must be addressed before the appropriate judicial authority.
| Table of Content |
|---|
| 1. application filed for quashing tax notices. (Para 1 , 4 , 9) |
| 2. claims not made during cirp are extinguished. (Para 10 , 12 , 13) |
| 3. nclt lacks jurisdiction to interfere in public law matters. (Para 22 , 39 , 40) |
ORDER
Per: Coram
1. The application has been filed by Mr. T.V.Tolin, the Successful Resolution Applicant of M/s. Orma Marble Palace Private Limited Applicant, under Rule 11 of the NCLT Rules, 2016, seeking the following reliefs: -
a) To quash Annexures A1, A2 and A9 communications dated 19.04.2018, 18.08.2023 and 26.02.2024 respectively, issued by the 1 Respondent;
b) To direct the Respondents not to take any coercive steps against the Applicants herein as indicated in Annexures A1, A2, and A9 communications dated 19.04.2018, 18.08.2023, and 26.02.2024 issued by the 1st Respondent.
2. The 1st Applicant is the Successful Resolution Applicant (SRA) in IA(IBC)/152(KOB)/2022 in IBA/41/KOB/2020. The 2nd Applicant is a private limited company which was put under CIRP by this Tribunal vide order dated 09.04.2021 in IBA/41/KOB/2020. The Resolution Plan submitted by the 1st Applicant was approved by this Tribunal in an order dated 23.12.2022 in IA(IBC)/152/2022 in IBA/41/KOB/2020. The 1st Applicant took over the management of the 2nd Applicant company on 16.06.2023.
SUBMISSIONS MADE BY THE APPLICANT
3. The Applicant stated that the 1st Respondent had on 19.04.2018 issued Order of Assessment under Rule 9(1) and notice of demand under Rule 10 of The Kerala Building Tax (Plinth Area) Rules, 1992 demanding an amount of Rs. 1,44,000/- (Rupees One Lakh Forty- Four Thousand Only) as Building Tax about the non-residential building situated in Perambra Village, Chalakudy in Thrissur District with Old Survey No. 47/1 and which is owned and possessed by the 2nd Applicant Company. The said amount was directed to be paid in four equal installments of ₹36,000/- each.
4. On 18.08.2023, the 1st Respondent issued a revenue recovery notice to the 2nd Applicant Company concerning non-payment of the building tax amounting to Rs. 1,44,000/- with interest at 6% per annum, totaling to Rs. 1,88,597/- (Rupees One Lakh Eighty-Eight Thousand Five Hundred Ninety-Seven Only). The said notice demands immediate repayment of the dues, failing which the 2nd Respondent has been authorized by the 1st Respondent to initiate seizure proceedings against the assets of the 2nd Applicant Company.
5. It is stated that vide Order dated 09.04.2021 in IBA/41/KOB/2020 set in motion the Corporate Insolvency Resolution Process (CIRP) process against the 2nd Applicant Company (Corporate Debtor). Mr. Jasin Jose was appointed as the Interim Resolution Professional (IRP) and was later confirmed as the Resolution Professional (RP).
6. It is stated that the IRP made a public announcement in Form A on 21.04.2021, calling upon all the creditors of the Corporate Debtor to submit claims with proof on or before 04.05.2021. It is stated that despite the amounts demanded in the Order of Assessment and Notice of Demand bearing file no. G1-14870/17 dated 19.04.2018 from the 2nd Applicant/Corporate Debtor on the financial year 2018, the 1st Respondent did not participate in the CIRP and did not file any claim against the 2nd Applicant/Corporate Debtor before the IRP, concerning Order of Assessment and Notice of Demand bearing file no. G1-14870/17 dated 19.04.2018.
7. It is stated that on 05.12.2021, invitations were issued in Form G on Business Line (English) and Deshabhimani (Malayalam) for calling for an Expression of Interest ("EOI") from potential resolution applicants by the IRP. The IRP also made a pan-India advertisement of expression of interest in Business Standard (English) on 16.12.2021.
8. It is stated that, according to the publication of Form G, the 1st Applicant submitted a resolution plan. The Resolution Plan submitted by the 1st Applicant was approved with a 100% vote in the 9th Committee of Creditors' (COC) meeting dated 31.05.2022. Since the 1st Respondent never app
