Arena Superstructures Private Limited Vs Union of India And 3 Others (Allahabad High Court)
In a significant ruling, the Allahabad High Court on June 7, 2025, quashed a Goods and Services Tax (GST) demand and an associated notice issued against Arena Superstructures Private Limited for the financial year 2017-2018. The court held that once a resolution plan for a corporate debtor has been approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC), 2016, no further claims, including statutory dues, can be raised for the period prior to the plan’s approval.
The case, Arena Superstructures Private Limited Vs Union Of India And 3 Others, arose from a writ petition filed by Arena Superstructures Private Limited challenging an order dated January 27, 2025, passed under Section 74 of the CGST Act, 2017, and a subsequent demand notice.
Background of the Case: Arena Superstructures Private Limited initiated a Corporate Insolvency Resolution Process (CIRP) on October 10, 2020. A Resolution Professional was appointed on the same date, and creditors were invited to submit their claims. The GST Department at Noida was specifically notified by the Resolution Professional. Despite these proceedings, the impugned GST assessment order for the financial year 2017-2018 was passed on February 4, 2025. Crucially, the NCLT had already approved the resolution plan for Arena Superstructures Private Limited on July 19, 2022, well before the GST demand was raised.
Petitioner’s Arguments and Judicial Precedents: Representing Arena Superstructures Private Limited, counsel Rahul Agarwal, along with Saumya Srivastava and Ami Tandon, argued that the GST Department was barred from raising further demands once the NCLT had approved the resolution plan. They presented several judicial precedents to support their stance:
