Post approval of resolution plan, no new liability can be fastened: Allahabad HC

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, impugned assessment order passed after approval of resolution plan are contrary to section 31 of the Insolvency and Bankruptcy Code, 2016 and hence liable to be set aside. Facts- The petitioner no.1 was the erstwhile company that went through insolvency proceedings. The resolution plan was approved on February 24, 2021 wherein the Income Tax Department had als...