JSW Steel Limited Vs Pratishtha Thakur Haritwal & Ors. (Supreme Court of India)
The Supreme Court addressed a contempt petition filed by JSW Steel Limited alleging willful disobedience of its earlier judgment dated 13 April 2021 in Ghanshyam Mishra and Sons Private Limited v. Edelweiss Asset Reconstruction Company Limited and others. The petitioner argued that authorities in Chhattisgarh issued tax demand notices for periods predating approval of the company’s resolution plan, despite the Supreme Court’s ruling that all such pre-resolution claims stand extinguished unless included in the approved plan.
The insolvency proceedings originated from the corporate insolvency resolution process initiated against Monnet Ispat and Energy Ltd. An Interim Resolution Professional was appointed, claims were invited, and JSW Steel emerged as the successful resolution applicant. The National Company Law Tribunal, Mumbai approved the resolution plan on 24 July 2018, after which JSW took over the company’s management. Subsequently, certain authorities issued tax demand notices relating to periods before the takeover. The petitioner asserted that such demands were barred under the Insolvency and Bankruptcy Code, 2016, as interpreted in Ghanshyam Mishra, where the Supreme Court held that all claims not forming part of the approved resolution plan are extinguished and cannot be pursued.
