Assam Company India Limited vs The Commissioner Of Transport, Guwahati, Assam & Ors.

An application under Section 7 of Insolvency and Bankruptcy Code, 2016 was filed by the FC against the Applicant before the Hon’ble Tribunal and by an order dated 26^th October, 2017, this Tribunal admitted the said application and initiated Corporation Insolvency Resolution Process (CIRP) against the Applicant and declared moratorium under Section 14 of Insolvency and Bankruptcy Code, 2016. This Hon’ble Tribunal also appointed an Interim Resolution Professional (IRP) for collating the claims of the Applicant.

During the CIRP, the Respondent did not file its claim with the IRP. Thereafter, the IRP was replaced by the RP who floated the Expression of Interest for inviting the potential Resolution Applicants to submit their Resolution Plans.

The Resolution Plan was submitted by the Resolution Applicant being BRS Ventures Investment Limited (Resolution Applicant) and it was duly accepted by the Committee of Creditors in its 13^th Meeting held on 10^th August, 2018. The Hon’ble Tribunal also approved the said Resolution Plan vide order dated 20^th September, 2018.

In the approved Resolution Plan, it was clearly stated that barring aside the claims admitted and forming part of the Resolution Plan and other claim and/or demand prior to the effective date shall stand extinguished.

On 6^th March, 2019 the Applicant sent a letter to the Respondent No. 1 bringing to their knowledge the commencement of Corporate Insolvency Resolution Process against the Applicant and subsequent approval of the resolution Plan of BRS Ventures Investment Limited (successful Resolution Applicant) by the Hon’ble Tribunal wherein the successful Resolution Applicant has already infused the amount of Rs. 1,064 Cr. and settled the claim of the stakeholders as per the approved Resolution Plan out of which Rs. 18.93 Crores has been paid to the Operational Creditors. They had requested them to extinguish all the disputed and undisputed claims against the Applicant relating to the period prior to the effective date i.e. 20^th September, 2018 in terms of the approved Resolution Plan.

However, the Respondent failed to give any reply to the letters dated 6^th March, 2019 sent by the Applicant. The applicant is running several vehicles for transport of raw materials and other products relating to the business in Tea. As such, the applicant is being harassed while playing and running the said vehicles registered in the name of the applicant with the Transport Department, Govt. of Assam. Moreover, the applicant is facing vehicles in the daily course of business due to the in-action and or non-action on the part of the Transport Department, Government of Assam in compliance and/or in terms of the order dated 20^th September, 2018.

With reference to the letter dated 6^th March, 2019 issued by the applicant for extinguishment of all dues prior to the date of order for approval of Resolution Plan passed by the Hon’ble NCLT, Guwahati Bench, the applicant vide letter dated 27^th June, 2019 once again requested the Commissioner of Transport, Transport Department, Government of Assam for extinguishment of all claims of all Government Authorities relating to dues prior to the effective date as mentioned herein above to be permanently extinguished, written off in full, shall stand fully and finally discharged and settled. The applicant also informed that Respondent No. 1 of the order dated 26^th October, 2017 and 20^th September, 2018 and further thereby communicated to the Respondent No. 1 the applicant’s willingness to clear the pending Government Dues accrued on and from 21^st September, 2018 for running the vehicles registered in the name of the applicant.

In-spite of the letters dated 6^th march, 2019 and 27^th June, 2019 issued by the applicant to the respondent No. 1, no action or steps have been taken by the Transport Department and/or the respondent No. 1 to extinguish and/or waive the dues prior to the effective date and has also failed to comply with the order dated 20^th September, 2018 passed by the Hon’ble NCLT, Guwahati Bench in CP (IB) No. 20/GB/2017 in the present matter. Moreover, the applicant is willing and is prepared to pay the current legitimate dues of the respondent Authorities post the effective date. However, the Respondent Authorities is insisting upon the payment of the entire dues.

The Applicant has sent several letters for extinguishment of the claims of the respondents for the period prior to the approval of the resolution plan.

The applicant is facing difficulty in running the said vehicles registered in the name of the applicant and is prepared to pay the current legitimate dues of the Respondent Authorities post the effective date i.e. on and from 21^st September, 2018 but the Transport Department is not accepting the same and insisting upon all the previous dues including the period prior to the effective date. Thus, in these circumstances the Applicant is unable to make payment of the said dues and taxes levied by the Respondent Authorities.

The Respondent Authorities have acted in gross violation of the order dated 20^th September, 2018 passed by this tribunal.

Vide notification No. TMV. 340/2013/Pt-II/391 dated 30.05.2022, the Governor of Assam has been pleased to exempt outstanding liabilities of Road Tax/MV tax etc. prior to 20.09.2018 in respect of vehicles of the gardens under Assam Company India Limited against the vehicles registered in the offices of the District Transport Officer of Dibrugarh, Sivsagar, Tinsukia and Nagaon. A copy of the notification dated 30.05.2022 has been annexed along with the reply.

Since the Government has already decided to exempt the Road tax/ MV tax etc. prior to 20.09.2018 as prayed for, this Hon’ble tribunal may close the IA.