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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D.KARIA, PRANAV TRIVEDI
Sintex - BAPL Limited – Appellant
Versus
State of Gujarat – Respondent
| Table of Content |
|---|
| 1. consolidation of petition facts under article 226. (Para 1 , 3 , 4) |
| 2. petitioner status as a corporate debtor and relevant implications. (Para 5) |
| 3. arguments presented by both parties regarding the extinguishment. (Para 6 , 7) |
| 4. supreme court clarifications on extinguishment of tax liabilities. (Para 9 , 10 , 11 , 12) |
| 5. court decision to quash previous orders and notices. (Para 13) |
JUDGMENT :
PRANAV TRIVEDI, J.
1. Heard learned Senior Advocate Mr.Saurabh Soparkar with learned advocate Mr.Jay Kansara, for M/s. Wadiaghandy & Co.,for the petitioner and learned Assistant Government Pleader Ms.Shrunjal Shah for the respondent in Special Civil Application Nos.9855 of 2025 and 10988 of 2025 and Ms.Hetvi Sancheti, learned Assistant Government Pleader for the respondent in Special Civil Application No.9864 of 2025.
2. Rule returnable forthwith. Learned Assistant Government Pleader Ms.Shrunjal Shah, waives service of notice of rule on behalf of the respondent.
3. With consent of learned advocates for the respective parties, the matters are taken up for hearing as the issue involved is very short. All the three petitions have common issue, therefore, are being disposed of by thi
The approval of a resolution plan under the Insolvency and Bankruptcy Code extinguishes all prior tax liabilities of a corporate debtor, affirming the legal cleansing effect of the IBC.
Tax liabilities arising during corporate insolvency resolution cannot be extinguished by a resolution plan unless explicitly provided, as affirmed by recent Supreme Court rulings.
The approval of a resolution plan under the IBC extinguishes all claims not included in the plan, including tax liabilities.
The court held that upon approval of the resolution plan under the IBC, all pending claims not included in the plan stand extinguished, thus protecting the successful resolution applicant from any un....
Approved resolution plans under the Insolvency and Bankruptcy Code extinguish all pre-CIRP claims not included, including statutory dues from tax authorities.
The approval of a resolution plan under the IBC extinguishes all claims not included in the plan, including tax liabilities, ensuring a fresh start for the corporate debtor.
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