Kolkata: Holding that municipal bodies can possess statutory charges that qualify as security interests under insolvency law, the National Company Law Appellate Tribunal (NCLAT) has allowed the Kolkata Municipal Corporation (KMC) to recover Rs 51.72 lakh in unpaid property tax from a property in Kolkata owned by Talwalkars Better Value
Fitness Ltd.
The order by Justice Ashok Bhushan (Chairperson) and Barun Mitra (Technical Member) of the NCLAT’s Principal Bench in New Delhi, modified a July 19, 2024 ruling of the National Company Law Tribunal (NCLT), Mumbai Bench. The NCLT had partly admitted KMC’s appeal but declined to treat the civic body as a secured creditor, classifying its dues as ordinary government debt. According to the…