2023 (9) TMI 1728 - SCH - VAT / Sales Tax

Section 31 IBC challenge on state dues kept open, liberty granted to pursue review and return

SC, in a matter concerning applicability of Section 31 of the Insolvency and Bankruptcy Code, 2016 and settlement of entire State Government dues, ... Applicability of Section 31 of the Insolvency and Bankruptcy Code, 2016 - entire dues of the State Government has been settled - HELD THAT:- It is needless to observe that if a review petition is filed by the petitioner herein, the same shall be considered having regard to the aforesaid facts of the case and in accordance with law. In the event, the review petition is dismissed, liberty is reserved to the petitioner to approach this Court. The Supreme Court dealt with a special leave petition where the petitioner contended that the 'entire dues of the State Government has been settled' and that Section 31 of the Insolvency and Bankruptcy Code, 2016 would therefore apply. Reliance was placed on the Court's earlier judgment in 'Ghanashyam Mishra And Sons Private Ltd. ... Vs. Edelweiss Asset Reconstruction Company Ltd. ... (2021) 9 SCC 657,' which held that once a resolution plan is approved under Section 31, all claims, including those of governmental authorities, stand resolved as per the plan. Taking note of this submission, the Court did not enter into the merits but disposed of the special leave petition, granting liberty to the petitioner to approach the High Court by way of a review petition and to 'bring to the notice of the High Court the aforesaid aspects.' The Court directed that any such review be considered 'having regard to the aforesaid facts of the case and in accordance with law.' If the review is dismissed, the petitioner is given liberty to again approach the Supreme Court. All pending applications were also disposed of.