Auction Purchaser is not liable to pay any outstanding tax dues under the Maharashtra Village Panchayat Act, 1959 pertaining to the period prior to the acquisition of the assets of Corporate Debtor under the Insolvency and Bankruptcy Code, 2016 – Maha Mineral Mining and Benefication Pvt. Ltd. Vs. Gram Panchayat, Gowari – Bombay High Court

The Hon’ble High Court finds substance in the argument of the learned counsel for the petitioner that the action of the respondent in seeking to recover the outstanding tax due to it under the Maharashtra Village Panchayat Act, 1959 payable before the initiation of CIRP cannot be sustained. The petitioner who acquired the assets of Gupta Global Resources Pvt. Ltd. (Corporate Debtor) through the liquidation process in the year 2019 has received the sale certificate on 31.08.2019 and therefore, it is unflappable that the respondent can recover its outstanding dues payable before this date. The Scheme under the IBC, definitely do not permit such an action.

Auction Purchaser is not liable to pay any outstanding tax dues under the Maharashtra Village Panchayat Act, 1959 pertaining to the period prior to the acquisition of the assets of Corporate Debtor under the Insolvency and Bankruptcy Code, 2016 – Maha Mineral Mining and Benefication Pvt. Ltd. Vs. Gram Panchayat, Gowari – Bombay High Court Read Post »