Once Resolution Plan Is Approved; Government Cannot Make Any Further Claim

EMCO Limited Vs Joint Commissioner State Tax (Telangana High Court) In the case of EMCO Limited vs. Joint Commissioner State Tax, Telangana High Court ruled that government departments cannot make claims post-approval of a resolution plan under the I&B Code. This decision underscores the binding nature of approved plans on all stakeholders, preventing surprise claims. The scenario involved EMCO Limited as the corporate debtor undergoing liquidation, acquired by another company through auction. Despite discharging all liabilities, the GST department issued a show cause notice for tax dues p...