TaxTMI 
TaxTMI 
2020 (8) TMI 347
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....elated and cannot be looked into at this stage when the entire Resolution Plan has been implemented. The Parties are represented by their original status in the Company Petition for the sake of convenience. 2. These brief facts of the case are as follows: The Adjudicating Authority/NCLT Delhi Bench vide an Order dated 09th April 2019 admitted an Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor Uttam Strips Limited, filed by Power2SME Private Ltd. on 26th December 2018. After the completion of CIRP and approval of the Resolution Plan by the Adjudicating Authority, the Resolution Plan got implemented. 3. The Appellant Excise & Taxation Officer-cum-Assessing Authority, Mewat (Nuh), State of Haryana assessed Tax for Rs. 9,03,665/- on gross turnover of Rs. 1,08,21,691/- for the Assessment Year 2015-16. The Appellant came to know about the Corporate Insolvency Resolution Process initiated against the Assessee/Corporate Debtor before the Adjudicating Authority/NCLT in the first week of June 2019 through the Chartered Accountant by an email dated 04th June 2019. The Assessment order, along with the tax demand notice, was served u....
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.... dues of the Appellant. But the Adjudicating Authority has dismissed the said application by a non-speaking Order which is under Appeal before this Tribunal. It is on record that the Adjudicating Authority has passed the impugned Order stating that: "CA-1552/19 has been filed on behalf of the Excise and Taxation Officer, Nuh (Mewat), Haryana. It is submitted that there is total outstanding of Rs. 1,95,62,231/- from the Corporate Debtor. This grievance of the applicant is highly belated and cannot be looked into at this stage when the entire resolution plan has been implemented. No directions can be given to the non-applicant who has taken over the Operation of the Corporate Debtor to settle this liability as no claim was filed. This Court is also apprised that an appeal arising out of against the order approval the Resolution Plan is pending before the Hon'ble NCLAT. The Resolution Plan has been implemented subject to the outcome of the Appeal. The monitoring committee wishes to be discharged. Keeping in view the Appeal is still pending for disposal; we consider it expedient not to discharge the monitory committee till such time as the Appeal is a final disposed o....
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....ted by him has been accepted as this would amount to a hydra head popping up which would throw into uncertainty amounts payable by a prospective resolution applicant who successfully take over the business of the corporate debtor. All claims must be submitted to and decided by the resolution professional so that a prospective resolution applicant knows exactly what has to be paid in Order that it may then take over and run the business of the corporate debtor. This the successful resolution applicant does on a fresh slate, as has been pointed out by us hereinabove. For these reasons, the NCLAT judgment must also be set aside on this count." 9. Based on the above case, the law laid down by Hon'ble Supreme Court; it is clear that a Successful Resolution Applicant is not to be burdened with undecided claims at the stage of implementation of the Resolution Plan. The Successful Resolution Applicant is to be provided with a company free from past liabilities. It has been rightly understood that a Successful Resolution Applicant cannot be saddled with past liabilities indefinitely. Such an act will make it impossible for the Successful Resolution Applicant to run the business of the Co....
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....t the Company towards rights or claims relating to the period prior to the Effective Date shall also be withdrawn, and shall be of no legal consequence insofar as Company is concerned." 15. Based on the terms of the approved Resolution Plan, it is clear that the Operational Creditors has no rights against the acquiring Company relating to the period, before the Effective Date. The Acquiring Company shall not have any liability towards Operational Creditors for the amounts owed prior to the Effective Date. Since the claim of the Appellant, i.e. the Statutory dues are the operational debt of the corporate debtor, Uttam Strips Pvt Ltd, and no claim was filed by the Appellants before the Resolution Professional, despite the knowledge of the Corporate Insolvency Resolution Process against the Corporate Debtor Uttam Strips Ltd, therefore the Appellants does not have any right to claim its dues from the acquiring Company, i.e. Jyoti Strips Ltd. The approved Resolution Plan is binding on all the stakeholders; therefore, the Appellant is abode by the terms of the Approved Resolution Plan. Learned Counsel for the Appellant contends that the Assessment Order, along with the Tax Demand N....