Rabirun Vinimay Private Limited & Anr Vs Union of India & Ors (Calcutta High Court)
The petitioners initially challenged the vires of Notification No. 56 of 2023 – Central Tax, but during the hearing clarified that they were not pressing that prayer. The writ petition was therefore considered only in respect of the remaining prayers, which concerned an order in original dated August 31, 2024 issued under Section 73 of the CGST Act, 2017. Through that order, the Joint Commissioner, CGST and Central Excise, Kolkata North Commissionerate imposed a tax demand of ₹4,28,33,922 along with interest and penalty for the tax period April 2019 to March 2020.
UCO Bank had earlier initiated insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). The National Company Law Tribunal (NCLT), Kolkata Bench admitted the petition on March 7, 2019, thus commencing the Corporate Insolvency Resolution Process (CIRP). As no viable resolution plan emerged, the petitioner company was ordered into liquidation by the NCLT on March 5, 2020.
During liquidation, the company was sold as a going concern. This sale was confirmed by the NCLT on December 11, 2023. In its order, the NCLT referred to the Supreme Court judgment in Ghanashyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Co. Ltd., holding that once a resolution plan is approved, claims not forming part of such plan stand extinguished and cannot be pursued thereafter. It also cited Lalit Kumar Jain v. Union of India regarding the position of guarantors. The NCLT concluded that the sale of the corporate debtor as a going concern in liquidation is akin to a de facto CIRP, making the principles in those judgments applicable.
