NCLAT Rejects Tax Claim Against Reliance Communications
By: Admin
September 23, 2024 | NCLT | News | 4 Min Read
The National Company Law Appellate Tribunal (NCLAT) has dismissed a petition filed by the state tax department seeking dues from Reliance Communications (RCom). The tribunal noted that the tax claim was based on an assessment made after the initiation of the Corporate Insolvency Resolution Process (CIRP) against the debt-laden company.
Key Highlights:
- The NCLAT bench upheld the NCLT Mumbai bench’s decision, which had rejected the state tax department’s second claim of Rs 6.10 crore.
- CIRP against RCom began on June 22, 2019, and the state tax department filed two claims:
- The first claim of Rs 94.97 lakh on July 24, 2019, was accepted.
- The second claim of Rs 6.10 crore, based on an assessment order dated August 30, 2021, was rejected.
- The Committee of Creditors (CoC) of RCom had already approved the resolution plan on March 2, 2020.
Legal Outcome:
The NCLAT found that the second claim, arising after the CIRP was initiated and post-CoC approval, was not admissible. As a result, the tribunal upheld the earlier ruling and dismissed the claim.
Our Comments:
The NCLAT’s ruling highlights the importance of timely submission of claims during insolvency proceedings. Claims arising after the initiation of CIRP, especially post-CoC approval, may not be considered valid.
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