Resolution Plan That Does Not Provision For Statutory Dues Cannot Be Approved By The NCLT Under §31 Of The IBC: Sales Tax Officer v Rainbow Papers Ltd.
Brief Facts
The Corporate Insolvency Resolution Process was initiated against Rainbow Papers by the NCLT on 12 September 2017. Prior to the CIRP order, the Sales Tax Officer had initiated recovery
proceedings against Rainbow Papers and attached its property.
After initiation of the CIRP, the IRP issued advertisements inviting the submission of claims by 5 October 2017 and the committee of creditors was formed on 10 October 2017. The Gujarat Sales
Tax Officer filed a claim of ₹47.36 Crores on 28 February 2018 for dues under the Gujarat Value Added Tax Act 2003…
