Corporate Debt Resolution Shields Restructured Company from Post-Approval Tax Demands Under Insolvency and Bankruptcy Code

Corporate Debt Resolution Shields Restructured Company from Post-Approval Tax Demands Under Insolvency and Bankruptcy CodeCase-LawsGSTHC ruled that additional tax demands against the corporate debtor (CD) after NCLT’s Resolution Plan approval are invalid.

Corporate Debt Resolution Shields Restructured Company from Post-Approval Tax Demands Under Insolvency and Bankruptcy Code
Case-Laws
GST
HC ruled that additional tax demands against the corporate debtor (CD) after NCLT's Resolution Plan approval are invalid. The court held that post-resolution plan claims by creditors would impede the implementation of the approved restructuring process. Specifically, assessment orders and demand notices for tax years 2012-13, 2013-14, and 2017-2018 were quashed. The fundamental legal principle affirmed is that once an NCLT-approved Resolution Plan is in place, subsequent creditor claims are precluded to ensure a clean slate for corporate revival. The petition was consequently allowed, protecting the integrity of the insolvency resolution mechanism under the IBC.
TMI Updates – Highlights, quick notes, marquee, annotation, news, alerts

= = = = = = = =

Plain text (Extract) only
For full text:-Visit the Source

= = = = = = = =