Home » Articles » Rajasthan HC strikes down demand notices, upholds binding nature of Resolution Plan

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An issue plaguing successful resolution applicants under the Insolvency and Bankruptcy Code, 2016 (“IBC”) is with respect to government claims pertaining to the period prior to approval of the Resolution Plan. Government claims, such as those raised by the Income Tax Department, Central and State GST Department, extinguished by resolution plans continue to be pursued by such departments by way of issuance of demand notices under respective statutes.

UltraTech Nathdwara Cement Ltd. (formerly Binani Cements Ltd.) (“UNCL”) had filed a Writ Petition on the issue in the Rajasthan High Court, Jodhpur, for quashing the demand notices/ orders issued by the Tax Departments with respect to dues pertaining to the period prior to the approval of the Resolution Plan. The demand notices etc. were primarily with respect to disputes for the period prior to the corporate insolvency resolution contested by the Corporate Debtor i.e. Binani Cements Ltd.

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For any further information/clarification, please feel free to write to:

Mr. Bomi F. Daruwala: [email protected]