NCLT directs to consider the State Tax Department as Secured Financial Creditor while distributing proceeds in accordance with the judgment of Hon’ble Supreme Court of India in the case of Rainbow Papers Ltd. – Parag Sheth Liquidator of Sai Infosystem (India) Ltd. Vs. The Collector (Ahmedabad) & Ors. – NCLT Ahmedabad Bench

The State Tax are directed to remove the encumbrances/ charges registered with Respondent No. 3 on the properties of the Corporate Debtor as described above forthwith within three weeks to enable the Liquidator to proceed with auction / sale of assets of Corporate Debtor for the benefits of stakeholders. The Liquidator is directed to consider the State Tax Department as secured financial creditor while distributing proceeds in accordance with the judgment of Hon’ble Supreme Court of India in the case of State Tax Officer (1) versus Rainbow Papers Ltd. (2022) ibclaw.in 107 SC. The Liquidator & Respondents are directed to file the compliance report within seven days from the removal of charge from the said abovementioned property. Application is allowed and disposed of in terms of above order.

NCLT directs to consider the State Tax Department as Secured Financial Creditor while distributing proceeds in accordance with the judgment of Hon’ble Supreme Court of India in the case of Rainbow Papers Ltd. – Parag Sheth Liquidator of Sai Infosystem (India) Ltd. Vs. The Collector (Ahmedabad) & Ors. – NCLT Ahmedabad Bench Read Post »