Pr. Commissioner Of Income Tax v. Monnet Ispat And Energy Ltd

Pr. Commissioner Of Income Tax v. Monnet Ispat And Energy Ltd

(Supreme Court Of India)

Special Leave to Appeal (Civil) No. 6483/2018 | 10-08-2018

1. Heard.

2. Delay, if any, is condoned.

3. Given Section 238 of the Insolvency and Bankruptcy Code, 2016, it is obvious that the Code will override anything inconsistent contained in any other enactment, including the Income-Tax Act.

4. We may also refer in this Connection to Dena Bank vs. Bhikhabhai Prabhudas Parekh and Co. & Ors. (2000) 5 SCC 694 [LQ/SC/2000/783] and its progeny, making it clear that income-tax dues, being in the nature of Crown debts, do not take precedence even over secured creditors, who are private persons.

5. We are of the view that the High Court of Delhi, is, therefore, correct in law.

6. Accordingly, the Special Leave Petitions are dismissed.

7. Pending applications, if any, stand disposed of.

Advocate List
Bench
  • HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN
  • HON'BLE MS. JUSTICE INDU MALHOTRA
Eq Citations
  • [2018] 211 COMPCAS 99
  • (2018) 18 SCC 786
  • 2019 (1) CTC 240
  • LQ/SC/2018/985
Head Note

A. Debt Recovery Tribunals, Appellate Tribunals and Debt Relief Agencies Act, 1993 — Ss. 17 and 19 — Priority of claims — Income-tax dues — Whether take precedence over secured creditors — Held, income-tax dues, being in the nature of Crown debts, do not take precedence even over secured creditors, who are private persons — Insolvency and Bankruptcy Code, 2016, S. 238 overriding anything inconsistent contained in any other enactment, including the Income-Tax Act — Dena Bank, Bhikhabhai Prabhudas Parekh and Co., (2000) 5 SCC 694 B. Debt Recovery Tribunals, Appellate Tribunals and Debt Relief Agencies Act, 1993 — Ss. 17 and 19 — Priority of claims — Income-tax dues — Whether take precedence over secured creditors — Held, income-tax dues, being in the nature of Crown debts, do not take precedence even over secured creditors, who are private persons — Insolvency and Bankruptcy Code, 2016, S. 238 overriding anything inconsistent contained in any other enactment, including the Income-Tax Act — Dena Bank, Bhikhabhai Prabhudas Parekh and Co., (2000) 5 SCC 694