Department of State Tax vs Reliance Naval and Engineering Limited & Anr

Heard Learned Counsel for the Appellant as well as Learned Counsel for the Respondent.

By this Appeal, the Appellant has challenged the Order dated 23.12.2022 by which Order the Adjudicating Authority has allowed the Application filed by the Resolution Professional and approved the Resolution Plan.

The Appellant has filed a claim in the Corporate Insolvency Resolution Process of Reliance Naval and Engineering Ltd. which claim was admitted by Resolution Professional in the Plan. The Appellant has already been allocated 10.7% of the admitted claim. Learned Counsel for the Appellant submits that the Department of State Tax ought to have been treated as secured creditors hence the amount ought to have been accepted.

Learned Counsel for the Respondent submits that an Appeal filed by the Department of State Tax being Company Appeal (AT) Ins. No. 246 of 2022 raising same issues has already been decided by this Tribunal holding that Appellant cannot claim as secured creditors.

We have considered the submissions of Learned Counsel for the parties and have perused the record.

The issues raised in this Appeal are fully covered by the Judgment of this Tribunal decided on 07.02.2023 in Company Appeal (AT) Ins. No. 246 of 2022. Following the Judgement as noted above, this Appeal is also dismissed.