High Court Upholds IBC "Clean Slate" Principle, Orders Removal of Illegal Charges on Insolvent Company's Assets.

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....Under the Insolvency and Bankruptcy Code (IBC), the Corporate Insolvency Resolution Process (CIRP) was initiated against the first petitioner-company, and a moratorium was imposed, prohibiting any creation of charge on its properties during the CIRP period. Despite this, the respondents created a charge on the petitioner's properties, violating the IBC's provisions. Subsequently, an acquisition plan for the petitioner-company was approved by the NCLT, extinguishing all existing debts, including tax dues owed to the respondents. The IBC's "Clean Slate" principle mandates the extinguishment of all government dues upon approval of a resolution/acquisition plan. The respondents' claim of priority for tax dues as "Crown Debt" was rejected. The H.........