The National Company Law Appellate Tribunal, Chennai Bench, comprising Justice Sharad Kumar Sharma (Member – Judicial) and Jatindranath Swain (Member – Technical), has addressed the conflict between a secured creditor’s statutory attachment under the Tamil Nadu Revenue Act, 1864, and the liquidation process under the IBC, 2016.
The tribunal held that the government’s attachment of the corporate debtor’s property for recovery of tax dues cannot continue during liquidation. The bench ruled that section 238 of the IBC overrides all other laws, and therefore the encumbrance created by the appellant on the said property deserves to be lifted.
Background of the Case
The corporate debtor was admitted into the CIRP, and…