Litigation in case of amalgamation/de merger under GST of old COmpany

[Abhijeet Mane]

In case of a demerger or amalgamation, who will handle the existing litigation of the transferor if the transferor entity merges with another entity and then surrenders its registration?

[Sadanand Bulbule]

In terms of Section 87 of the CGST Act, in case of amalgamation or demerger, once the transferor entity merges and surrenders its registration, all existing litigation must be handled and defended by the transferee / resulting entity, and any proceedings continued against the non-existent transferor are void in law.

AI Summary

Amalgamation/demerger litigation under GST: the transferee must defend transferor's pending cases; actions against the dissolved transferor are void. Under the CGST Act, the resulting/transferee entity is responsible to defend and continue any pending litigation of the transferor after merger and surrender of registration; proceedings against the non-existent transferor following such merger are void.