Once Municipal Corporation has filed claim against Property Tax, RP has absolute right to deal with the attached property | Merely because Municipal Corporation has attached the assets for recovery of its Property Tax, it cannot continue with attachment and refuse to give handover the possession to the RP – Pimpri Chinchwad Municipal Corporation Vs. Jayanti Lal Jain IRP of Windals Auto Pvt. Ltd. – NCLAT New Delhi
Hon’ble NCLAT held that:
(i) The Section 406 of the Maharashtra Municipal Corporation Act, 1949, provides an appeal against any rateable value or the capital value, as the case may be or tax fixed or charged. Present is not a case where the RP is challenging the tax fixed or charged under the act over the assets.
(ii) It is true that attachment of the asset property was by the Appellant for realisation of its Property Tax prior to the initiation of the CIRP, but by only attachment of the assets, the rights entitled in the property does not vest in the Appellant.
(iii) The Corporate Debtor is the owner of the assets hence the RP is entitled to take possession and filed the application before the Adjudicating Authority.
(iv) Merely because Appellant has attached the assets for recovery of its Property Tax, it cannot continue with attachment and refuse to give handover the possession to the RP.