https://www.taxtmi.com/caselaws?id=775017 A company sold as a going concern after liquidation could not be burdened with pre-transfer liabilities or prosecution for alleged antecedent defaults, because the clean slate principle and Section 32A of the Insolvency and Bankruptcy Code protected the purchaser from carrying forward such liabilities. The Court also found that the NCLT-approved sale and transfer order, together with the terms of sale, covered the alleged post-acquisition issues relied on in the notices. As the authority had already formed a concluded view on prosecution despite earlier detailed replies, the impugned show cause notices were held unsustainable and were quashed. en-us Tue, 15 Jul 2025 00:00:00 +0530 Fri, 18 Jul 2025 08:22:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775017 A company sold as a going concern after liquidation could not be burdened with pre-transfer liabilities or prosecution for alleged antecedent defaults, because the clean slate principle and Section 32A of the Insolvency and Bankruptcy Code protected the purchaser from carrying forward such liabilities. The Court also found that the NCLT-approved sale and transfer order, together with the terms of sale, covered the alleged post-acquisition issues relied on in the notices. As the authority had already formed a concluded view on prosecution despite earlier detailed replies, the impugned show cause notices were held unsustainable and were quashed. Case-Laws Companies Law Tue, 15 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775017