No basis to contend that Income Tax Department is Secured Operational Creditor – Income Tax Department Vs. Mr. G. Madhusudhan Rao RP of Midland Polymers Ltd. & Anr. – NCLAT New Delhi

In this case, the amount of Rs.5 lakhs was allocated and the nature of claim of Income Tax Department was mentioned as contingent liability. As appeal was pending against the assessment order.
Hon’ble NCLAT New Delhi held that:
(i) It is not shown that the amount of Rs.5 lakh is below the amount which the Appellant was entitled in the event of liquidation of the Corporate Debtor.
(ii) Insofar as judgment of the Hon’ble Supreme Court is concerned, we are of the view that in ‘Rainbow Papers Ltd. (2022) ibclaw.in 107 SC, the Operational Creditor was held to be secured creditor on the basis of relevant statutory provisions whereas there is no basis to contend that the Appellant is secured operational creditor.

No basis to contend that Income Tax Department is Secured Operational Creditor – Income Tax Department Vs. Mr. G. Madhusudhan Rao RP of Midland Polymers Ltd. & Anr. – NCLAT New Delhi Read Post »