TaxTMI 
TaxTMI 
2026 (5) TMI 182
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....for the petitioner and learned Senior Standing Counsel Ms. Maithili Mehta for the respondent. 2. Rule returnable forthwith. Learned Senior Standing Counsel Ms. Maithili Mehta waives service of notice on behalf of the respondent. 3. With the consent of the learned advocates for the respective parties, the matter is taken up for hearing, as the issue involved is very short. 4. The petition has been filed under Article 226 of the Constitution of India with the following prayers:- "8( a) To quash and set-aside action of Respondent in adjusting Income Tax Refund to the tune of Rs. 26,86,580/- for Assessment Year 2019-20 to 2023-24 as provided in intimations at Annexure- "E" to the Petition; (AA) To quash and set aside ....
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....ons, 2016") thereby inviting claims from the various creditors of the petitioner. 5.3. Further, under the CIRP, the Resolution Plan of M/s. Caxchem Chemical Corporation came to be approved by the Tribunal vide order dated 13.12.2021 under Section 30(6) of the IBC. The said Resolution Plan provided for the waiver and extinguishment of all the unassessed/assessed tax liabilities for the period prior to the Tribunal approval date. 5.4. The respondent has adjusted the income tax refunds for the Assessment Years 2018-19 to 2023-24 after the approval of the Resolution Plan for the dues towards income tax. It is the case of the petitioner that the respondent has illegally adjusted the refund amount towards income tax dues by way of impugned ....
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....a for the respondent-Department is not in a position to controvert the position of law as far as the extinguishment of the tax dues are concerned in terms of Section 31 of the IBC. 7. DISCUSSION & FINDINGS:- 7.1. A perusal of the Resolution Plan which came to be approved on 13.12.2021 by the Tribunal would reveal the following provisions as evident from the relevant portion extracted below:- "EFFECT OF THE RESOLUTION PLAN (i) On payment of the proposed plan value payable to various stakeholders as mentioned at Para 6 of the Plan, the entire outstanding dues of each of the creditors/stakeholders mentioned therein shall stand discharged and nothing further shall be deemed to be payable to any of the category of the cre....
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....ors of Essar Steel India Ltd. (Supra), the Hon'ble Apex Court has held as under:- "107. For the same reason, the impugned NCLAT judgment in holding that claims that may exist apart from those decided on merits by the resolution professional and by the Adjudicating Authority/Appellate Tribunal can now be decided by an appropriate forum in terms of Section 60(6) of the Code, also militates against the rationale of Section 31 of the Code. A successful resolution applicant cannot suddenly be faced with "undecided" claims after the resolution plan submitted 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 would successful....
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....cluding the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the adjudicating authority grants its approval under Section 31 could be continued. xxx xxx xxx 138 In the forgoing paragraph, we have held that the 2019 Amendment to Section 31 IBC is clarificatory and declaratory in nature and therefore will have a retrospective operation. As such, when the resolution plan is approved by NCLT, the claims, which are not part of the resolution plan, shall stand extinguished and the proceedings related thereto shall stand terminated. Since the s....