Pridhvi Asset Reconstruction and Securitisation Company Ltd vs Sri Pavana Keerthi Hotels India Pvt Ltd
IA (IBC) 250/2024 in Company Petition IB/153/2021
Facts:
1. Corporate Debtor was admitted into Corporate Insolvency Resolution Process (CIRP) by this Tribunal vide order dated 11.04.2022 in a Petition vide C.P.No. IB/153/7/2021 filed by M/s. Pridhvi Asset Reconstruction and Securitisation Company Limited (Financial Creditor) and appointed the Applicant herein as Resolution Professional of the Corporate Debtor.
2. During the CIRP, the Respondent Authority through their jurisdictional bill collector of Amberpet Circle No.16 got issued a demand notice dated 10.11.2022 to the Corporate Debtor (Annexure B) and asked for various documents. That the Respondent Authority also informed the Corporate Debtor that it is running the Hotel without obtaining/renewing the trade license for the past five years and thus violated the rules and Regulations.
3. The Applicant herein also obtained the earlier notices issued by the Respondent Authority in regard to the Hotel and ascertained the details of the arrears of tax to be paid by the Corporate Debtor (Annexure C). That as per the calculations made by the Applicant, the total arrears of tax to be paid by the Corporate Debtor to the Respondent Authority stands at Rs.38,54,691/-. Out of this, the arrears of Rs.12,24,704/- pertains to CIRP period and arrears of Rs.26,29,987/- pertains to pre-CIRP period
4. Respondent Authority informed the Applicant that unless the old arrears of tax are not cleared, the taxes for the CIRP period will not be accepted by the software of the Respondent Authority. That the Respondent Authority has indicated their intention to cease and seal the Hotel if the arrears are not fully paid within the stipulated period.
5. Application is filed challenging the above decision.
Issue: Whether the application can be admitted ?
Decision: NCLT allowed interim relief.
Rationale:
1. NCLT noted that demand made by the respondent includes arrears of tax for Pre -CIRP period and also tax dues accrued during the CIRP period. But , as per IBC statute, a demand cannot be made by the Respondent Authority demanding the arrears of tax pertaining to the Pre-CIRP period to be cleared by way of a demand notice as in the present case.
Order:
