IBC being overrides both the Coal Mines (Special Provisions) Act, 2015 (CMSPA) and the Mines and Minerals (Development and Regulation) Act, 1957 | Payment of pre-CIRP dues to creditors cannot be made by Resolution Professional outside the resolution framework – Avil Menezes RP of Topworth Urja & Metals Ltd. Vs. Ministry of Coal and Ors. – NCLAT New Delhi

Hon’ble NCLAT held that:

(i) Our legal system includes the principle of public trust as a part of the Indian jurisprudence and the Hon’ble Supreme Court has held in a catena of judgements that the Constitution postulates the principle of public trust especially in Part IV.
(ii) IBC being a later enactment, it would override both the Coal Mines (Special Provisions) Act, 2015 (CMSPA) and the Mines and Minerals (Development and Regulation) Act, 1957.
(iii) As per the provisions of the IBC, any Government and/or statutory Authority is also required to file its claims for any dues pending to be paid to such authority.
(iv) The reasoning of Rainbow Papers will be applicable only in such cases where the statutory provision creating first charge in favour of the relevant government or statutory authority is pari materia with the provision of Section 48 of the GVAT Act.

IBC being overrides both the Coal Mines (Special Provisions) Act, 2015 (CMSPA) and the Mines and Minerals (Development and Regulation) Act, 1957 | Payment of pre-CIRP dues to creditors cannot be made by Resolution Professional outside the resolution framework – Avil Menezes RP of Topworth Urja & Metals Ltd. Vs. Ministry of Coal and Ors. – NCLAT New Delhi Read Post »