Bgr Energy Systems Ltd. Vs State of U.P. and Another (Allahabad High Court)
In the case of BGR Energy Systems Ltd. vs State of U.P., the Allahabad High Court reviewed a challenge against an order dated April 26, 2024, issued under Section 73 of the U.P. GST Act, 2017. The petitioner contested the order, citing that they were undergoing insolvency resolution under an Interim Resolution Professional (IRP) at the time the initial show cause notice was issued. Although the petitioner provided a partial reply and requested additional time due to the ongoing resolution process, the adjudicating authority did not issue further notice or reschedule the proceedings. Notably, the NCLT’s order appointing the IRP was set aside on April 15, 2024, and the petitioner had since exited insolvency. The High Court found that the adjudicating authority should have considered the IRP’s appointment and granted the petitioner a fair opportunity. Consequently, the court set aside the impugned order, directing that the petitioner submit a detailed reply to the show cause notice within two weeks. A new hearing date with at least 15 days’ notice must be provided, allowing for a fresh adjudication within two months.
FULL TEXT OF THE JUDGMENT/ORDER OF ALLAHABAD HIGH COURT
