The outstanding dues of the property tax relating to period prior to sale confirmation are dues that are akin to claim of an unsecured creditor and should be discharged in terms of the properties regarding distribution of assets given in section 53 of IBC – Bhatpara Municipality Through its Chairperson Vs. Nicco Eastern Pvt. Ltd. – NCLAT New Delhi
NCLAT held that the outstanding dues of the property tax relating to period prior to sale confirmation are thus dues that are akin to claim of an unsecured creditor (Bhatpara Municipality in the present case) and should be discharged in terms of the properties regarding distribution of assets given in section 53 of IBC. The auction-purchaser cannot be held liable to pay any such dues relating to period prior confirmation of sale as has been held by the Hon’ble Supreme Court in the matter of AI Champdany Industries Ltd. vs. The Official Liquidator & Anr. (supra). In the above mentioned situation, we are unable to accept the plea made by the Appellant that Respondent No. 1 should not be absolved from paying outstanding dues relating to the property stated in the demand notice dated 1.2.2021 amounting to Rs.68,09,123.61. The demand notice is quashed. The appeal fails and the Impugned Order is upheld. The auction-purchaser is held to be not liable to pay to the Appellant the amount as demanded by its notice dated 1.2.2021. No order as to costs.
