Nrc Limited vs State Of Maharashtra Thr Agp And Anr on 19 October, 2023

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Bombay High Court

Nrc Limited vs State Of Maharashtra Thr Agp And Anr on 19 October, 2023

Bench: G.S. Patel

                                                                                      905-ASWP-12732-2023.DOC




                                                                                                               Ashwini

                                    IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                                 CIVIL APPELLATE JURISDICTION
                                                 WRIT PETITION NO. 12732 OF 2023

                               NRC Ltd                                                               ...Petitioner
                                      Versus
                               State of Maharashtra Through AGP & Anr                            ...Respondents

                               Mr C Keswani, with Dhruvee Patel, i/b Economic Laws Practice, for
                                    the Petitioner.
                               Mr AS Rao, for Respondent No.2-KDMC.
                               Mr SL Babar, AGP, for the Respondent-State.

                                                             CORAM      G.S. Patel &
                                                                        Kamal Khata, JJ.

                                                             DATED:     19th October 2023
                               PC:-

1. The dispute here relates to a property tax demand by the Kalyan Dombivali Municipal Corporation ("KDMC"). Specifically, the question is whether this demand can survive the successful conclusion of a Corporate Insolvency Resolution Process ("CIRP") Digitally signed by ASHWINI ASHWINI GAJAKOSH by which the Petitioner represented by Mr Keswani was the H Date:

GAJAKOSH 2023.10.20 10:43:30 +0530 successful Resolution Applicant.

2. Considering various decisions of the Supreme Court, in another matter relating to the Maharashtra State Electricity Distribution Co Ltd ("MSEDCL"), we passed an interim order on 30th September 2022.1 We are told that MSEDCL challenged that 1 Interim order dated 30th September 2022 in Writ Petition No 8449 of 2022, NRC Ltd v State of Maharashtra & Anr.

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19th October 2023 ::: Uploaded on - 20/10/2023 ::: Downloaded on - 21/10/2023 02:19:47 ::: 905-ASWP-12732-2023.DOC order before the Supreme Court, which declined to interfere on the basis that it was an interim order and MSEDCL could apply for an early date of listing at any stage.2

3. MSEDCL has never sought an early listing, but we see no reason to delay any further a final hearing of that matter or similar matters that raise the same or substantially similar issues. Just yesterday we had two other cases that raised a similar question in relation to past property tax dues claimed by the Navi Mumbai Municipal Corporation ("NMMC"). One was a case where the previous corporate debtor went into liquidation, the CIRP having failed.3 The other was a case where proceedings were taken under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 ("SARFAESI").4 In both cases, there were auction sales. Before us was the successful auction purchaser contending that there was no liability for the past property tax dues of the previous corporate debtor.

4. We believe it would be convenient to tag all these matters together.

5. The present Petition along with Writ Petition No 8449 of 2022 will be listed on 13th December 2023 at 2.30 pm. 2 Order dated 25th August 2023 in SLP (C) No 18789 of 2023. 3 RVS Global Solutions Pvt Ltd v Municipal Commissioner, Navi Mumbai Municipal Corporation & Ors, Writ Petition (St) No 26744 of 2023, order dated 18th October 2023.

4 RVS Global Solutions Pvt Ltd v Municipal Commissioner, Navi Mumbai Municipal Corporation & Ors, Writ Petition (St) No 26750 of 2023, order dated 18th October 2023 Page 2 of 3 19th October 2023 ::: Uploaded on - 20/10/2023 ::: Downloaded on - 21/10/2023 02:19:47 ::: 905-ASWP-12732-2023.DOC

6. We request Mr Keswani's attorney to give notice to MSEDCL that the Writ Petition against MSEDCL (WP No 8449 of 2022) will be taken up for final hearing on that date.

7. Mr Rao for the KDMC has no objection to this scheduling.

8. We are told that there are proceedings before the Civil Judge, Senior Division, Kalyan in regard to 23 property tax bills raised by the KDMC. The Petitioners have been told to deposit the entire amount of the demand. Since we have fixed an early date for hearing, we request the Civil Judge, Senior Division, Kalyan not to proceed with that set of appeals until this Court has decided the issues.

9. We also draw the notice of both sides to our recent decision in Kamla Industrial Park Ltd & Anr v MCGM & Ors, and the discussion there in regard to the IBC and claims by local bodies.5

10. List this matter along with Civil Writ Petition No 8449 of 2022. To be listed along with Writ Petition (St) No 26744 of 2023 and Writ Petition (St) No 26750 of 2023 on 13th December 2023 at 2.30 pm. (Kamal Khata, J) (G. S. Patel, J) 5 Writ Petition No. 606 of 2022 and connected Interim Applications decided on 21st September 2023.

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