Past Tax Liabilities That Are Not Part Of Resolution Plan Shall Stand Extinguished: NCLT Mumbai
Live LawThe National Company Law Tribunal, Mumbai Bench, comprising of Justice P.N. Limited, has held that all past liabilities arising out of any levies/tax dues to any government authorities, etc., which accrued during CIRP period and are not part of the Resolution Plan, shall stand extinguished from the date of approval of the Resolution Plan. On 03.02.2022, the Adjudicating Authority while approving the Resolution Plan had directed that all past liabilities arising out of any levies/tax dues to any government authorities, etc., which was not part of the Resolution Plan and pertaining to pre-CIRP period, shall stand extinguished from the date of approval of the Resolution Plan. The waivers included the liabilities accrued during the CIRP period, liabilities which shall occur till the closing date and liabilities which shall arise on implementation of the Resolution Plan. Decision Of NCLT The Bench opined that all the past liabilities arising out of any levies/tax dues to any government authorities, etc., which are not part of the Resolution Plan and pertaining to CIRP period, shall stand extinguished from the date of approval of the Resolution Plan.