Recently, the division judge bench of the Allahabad High Court held that once Resolution Plan has been approved by the NCLT, all other creditors are barred from raising their claims subsequently, as the same would disrupt the entire resolution process.
Brief facts:
The factual matrix of the case is that the petitioner went into a Corporate Insolvency Resolution Process and a resolution professional was appointed on the same day and then, the proceedings were continued before the National Company Law Tribunal (in brevity NCLT). As per the procedure, the creditors were asked to submit their claims before the Resolution Professional. Specific notice was also sent to G.S.T. Department at Noida by the Resolution Professional to the/of the petitioner. The resolution plan was approved by the NCLT.
Contentions of the Petitioner:
The counsel appearing on behalf of the Petitioner contended that once the Resolution Plan has been approved by the NCLT, the G.S.T. Department cannot create further dues by way of passing orders. The Petitioner relied upon the judgments titled Ghanshyam Mishra and Sons (P) Ltd. Vs. Edelweiss Asset Reconstruction Co. Ltd (2021), N.S. Papers Ltd. Vs. Union of India and Others (2024), Vaibhav Goyal & Another Vs. Deputy Commissioner of Income Tax & Another (2025), and Committee of Creditors of Essar Steel India Ltd. Through Authorised Signatory Vs. Satish Kumar Gupta & Others (2019).
Observations of the court:
The Hon’ble Court while relying upon the judgments titled M/S NS Papers Limited And Another Vs. Union of India Through Secretary and Others (2024), and Vaibhav Goyal & Another Vs. Deputy Commissioner of Income Tax & Another (2025) held that once Resolution Plan has been approved by the NCLT, all other creditors are barred from raising their claims subsequently, as the same would disrupt the entire resolution process.
Based on the consideration, the court quashed the impugned assessment order.
The decision of the court:
With the above direction, the present writ petition is allowed.
Case Title: M/S Arena Superstructures Private Limited V. Union of India
Coram: Hon'ble Mr. Justice Shekhar B. Saraf, Hon'ble Justice Dr. Yogendra Kumar Srivastava
Case No.: WRIT TAX No. - 1716 of 2025
Advocates of the Petitioner: Ami Tandon,Rahul Agarwal,Saumya Srivastava
Advocate for the Respondent: A.S.G.I., C.S.C., Dhananjay Awasthi
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