https://www.taxtmi.com/caselaws?id=752675 The HC ruled that State Tax Authorities cannot recover dues from a corporate debtor after approval of a resolution plan under IBC. The petitioner, a Special Purpose Vehicle for highway development, underwent CIRP from January 2020 to May 2022. During this period, a moratorium under Section 14 IBC prevented recovery actions. The State failed to approach the Resolution Professional with their claims before the resolution plan's approval by Committee of Creditors and NCLT. Under IBC's waterfall mechanism, government dues rank lower in priority under Section 53(1)(e) compared to secured creditors and workmen. The HC allowed writ petitions, restraining State from recovery proceedings under assessment orders. en-us Wed, 24 Apr 2024 00:00:00 +0530 Wed, 15 May 2024 13:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=752675 The HC ruled that State Tax Authorities cannot recover dues from a corporate debtor after approval of a resolution plan under IBC. The petitioner, a Special Purpose Vehicle for highway development, underwent CIRP from January 2020 to May 2022. During this period, a moratorium under Section 14 IBC prevented recovery actions. The State failed to approach the Resolution Professional with their claims before the resolution plan's approval by Committee of Creditors and NCLT. Under IBC's waterfall mechanism, government dues rank lower in priority under Section 53(1)(e) compared to secured creditors and workmen. The HC allowed writ petitions, restraining State from recovery proceedings under assessment orders. Case-Laws IBC Wed, 24 Apr 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=752675