INSUBCONTINENT EXCLUSIVE:
NCLAT has set aside a petition filed by the state tax department claiming dues from Reliance Communications
Image: Wikipedia2 min read Last Updated : Sep 21 2024 | 2:15 PM IST
The NCLAT has set aside a petition filed by the state tax department
claiming dues from Reliance Communications (RCom) observing that it was based on the assessment made after the initiation of insolvency
resolution process against the debt-ridden firm.
A two-member NCLAT bench upheld the earlier order passed by the Mumbai bench of the
National Company Law Tribunal (NCLT), which had rejected the state tax department's second claim of Rs 6.10 crore.
Corporate Insolvency
Resolution Process (CIRP) against RCom was initiated on June 22, 2019
on November 15, 2021 for Rs 6.10 crore, which arose out of an assessment order dated August 30, 2021.
The NCLT had admitted the first
claim, which was passed before the initiation of CIRP
However, it did not accept the claim which was based on an assessment order passed in 2021.
The Committee of Creditors (CoC) of RCom also
approved the plan on March 2, 2020, and the subsequent claim was filed by the state tax department on November 15, 2021.
The said order
was challenged by the state tax department before the National Company Law Appellate Tribunal (NCLAT), contending that NCLT ought to have
accepted the entire claim.
However, it was also rejected by NCLAT observing that the subsequent claim was filed after the approval of the
It upheld the view taken by NCLT that delay in filing the second claim cannot be condoned.
"Apart from the reasons given by the
Adjudicating Authority (NCLT), we are of the view that the claim which was on the basis of the assessment made subsequent to the initiation
of CIRP could not have been admitted," said the NCLAT bench comprising Chairperson Justice Ashok Bhushan and Arun Baroka.
"We thus do not
find any error in the order passed by the Adjudicating Authority partly allowing the application
There is no merit in the appeal
The appeal is dismissed," it further said.(Only the headline and picture of this report may have been reworked by the Business Standard
staff; the rest of the content is auto-generated from a syndicated feed.)First Published: Sep 21 2024 | 2:15 PMIST
