Approved resolution plan bars later tax reassessment against the corporate debtor; assessment action set aside.

Once a resolution plan is approved in corporate insolvency resolution proceedings, claims and proceedings not forming part of that plan cannot be enforced against the corporate debtor. Applying that settled principle and the Supreme Court's approach to the effect of an approved resolution plan, the HC held that reassessment proceedings initiated after NCLT approval were unsustainable. The reassessment notice and resulting assessment order were set aside, and the writ petition was allowed in favour of the assessee.

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Issues: Whether the assessment order and the reassessment notice issued after approval of the resolution plan under the corporate insolvency resolution process could be sustained.

Analysis: The assessment proceedings were initiated after the resolution plan had already been approved by the National Company Law Tribunal. The legal position that claims not forming part of the approved resolution plan cannot survive against the corporate debtor was treated as settled and binding, and the Court followed the Supreme Court ruling on the effect of an approved resolution plan as well as the consistent view taken in similar writ proceedings.

Conclusion: The reassessment and the resulting assessment order were held to be unsustainable and were set aside in favour of the assessee.

Final Conclusion: The writ petition was allowed, and the impugned assessment action did not survive after approval of the resolution plan.

Ratio Decidendi: Once a resolution plan is approved in corporate insolvency resolution proceedings, claims and proceedings inconsistent with that approved plan cannot be enforced against the corporate debtor.

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