New liability fastened after approval of resolution plan would palpably be illegal

NS Papers Limited And Another Vs Union of India Through Secretary And Others (Allahabad High Court) Allahabad High Court held that the resolution applicant cannot be saddled with new claims once a resolution plan has been approved. Thus, any new liability being fastened after the approval of the Resolution Plan would inherently and palpably be illegal. Facts- The petitioner no.1 was the erstwhile company that went through insolvency proceedings. She submits that the resolution plan was approved on February 24, 2021 wherein the Income Tax Department had also put forward its claim before the res...