Ghanashayam Mishra And Sons Private Limited v. Edelweiss Asset

ITA-188-2018 (O&M) IN THE HIGH COURT OF PUNJAB AND HARYANAAT CHANDIGARH ITA-188-2018 (O&M)Date of Decision: 27.08.2024 The Pr. Commissioner of Income-tax, Patiala VeTUuS M/s J.J. Solvex Private Limited .....Appellant .....Respondent CORAM: HON'BLE MR JUSTICESANJEEV PRAKASH SHARMA HON'BLE MR JUSTICE SANJAY VASHISTH Present:Mr. Amanpreet (A.P.) Singh, Senior Standing Counsel for the appellant. Mr. Reshabh Bajaj, Advocate, for the respondent. """""" SANJEEV PRAKASH SHARMAJ.| Learned counsel for the respondent has pointed that therespondent has after being declared insolvent in terms of Insolvency andBankruptcy Code, 2016 has been taken over by auction purchaser inresolution plan as accepted by the NCLT in IA No. 243 of 2021 in terms ofthe approval by the Committee of the Creditors vide order dated 08.07.2022,the appellant Central Government Income Tax Authority, therefore, wouldhave no stack of claim against the newly appointed auction purchaser of theproperty of the respondent in view of judgment of Supreme Court in Ghanashayam Mishra and Sons Private Limited vs Edelweiss Asset Reconstruction Company Limited 2021 (9) SCC 657, wherein it has beenheld as under:- “Conclusion 102. In the result, we answer the questions framed by usas under: ��������������������� 102.1. That once a resolution plan is duly approved bythe adjudicating authority under sub-section (1) ofSection 31, the claims as provided in the resolution planshall stand frozen and will be binding on the corporatedebtor and its employees, members, creditors, includingthe Central Government, any State Government or anylocal authority, guarantors and other stakeholders. Onthe date of approval of resolution plan by theadjudicating authority, all such claims, which are not apart of resolution plan, shall stand extinguished and noperson will be entitled to initiate or continue anyproceedings in respect to a claim, which is not part ofthe resolution plan. 102.2. The 2019 Amendment to Section 31 of the I&BCode is clarificatory and declaratory in nature andtherefore will be effective from the date on which the I&BCode has come into effect. 102.3. Consequently all the dues including the statutorydues owed to the Central Government, any StateGovernment or any local authority, if not part of theresolution plan, shall stand extinguished and noproceedings in respect of such dues for the period priorto the date on which the adjudicating authority grants itsapproval under Section 31 could be continued.” 2.In view of the fact that the respondent company has beendeclared insolvent under the IBC, 2016 and the resolution plan wasaccepted and approved by the Committee of Creditors and the auctionpurchaser cannot be held liable for the payment of dues arising under anylaw which are of the Central Government or any State Government or anylocal authority, the claim of the Income Tax Department shall stand ITA-188-2018 (O&M) -3- foreclosed after the order passed by the NCLT on 08.07.2022. The ITA(Appeal), therefore, has become infructuous and is accordingly dismissed. 3.All pending applications shall stand disposed of. (SANJEEV PRAKASH SHARMA)JUDGE 27.08.2024Seema/vsWhether speaking/reasonedWhether reportable Yes/NoYes/No (SANJAY VASHISTH)JUDGE