Case Law Details
Sree Metaliks Limited Vs Additional Director General And Ors (Delhi High Court)
Delhi High Court held that as per law laid down by the Supreme Court in Ghanashyam Mishra, all dues including statutory dues shall stand extinguished and no proceedings in respect of dues for period prior to date on which approval to resolution plan is granted could be continued.
Facts- The short issue which arises for consideration in the writ petition concerns the sustainability of the show-cause notice, issued by the Additional Director General (ADG), Directorate of Revenue Intelligence (DRI).
The petitioner i.e., Sree Metaliks Limited [SML] asserted, that the show-cause notice is liable to be quashed and/or set aside, for the reason, that it has been issued after the Resolution Plan framed under the aegis of the National Company Law Tribunal, Kolkata Bench [NCLT], received the imprimatur of the National Company Law Appellate Tribunal [NCLAT].
Conclusion- Supreme court in the case of Ghanashyam Mishra & Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Ltd. has held that all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the adjudicating authority grants its approval under Section 31 could be continued.
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