Directors Not Automatically Liable for GST Dues During Liquidation: Madras HC

N.Ramkhuar Narasimhan Vs Assistant Commissioner (ST) (Madras High Court) The Madras High Court examined the legality of recovery proceedings initiated against individual directors of a private company that was already under liquidation. Insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 had been initiated against the company, following which an Interim Resolution Professional was appointed and later designated as the Liquidator. Despite liquidation, the company’s business was carried on during the period from April 2019 to March 2021, during which certain GST liabilities w...