Megha Mittal & Shreya Jain
Colloquially referred to as a ‘rebirth’, a resolution plan is the revival route for the corporate debtor, free of its past liabilities and dues, paid in accordance with the approved plan. Having said so, it might be noted that resolution plans assume the status of a statutory binding contract once approved by the adjudicating authority. Recently, the Hon’ble Rajasthan High Court, in Ultra Tech Nathdwara Cement Ltd., (formerly known as Binani Cements Ltd.) vs. Commissioner, Central Goods And Service Tax and Central Excise Commissionerate and Ors., held that no demands can be raised by any statutory body, for a period prior to the approval and finalization of resolution plan, after the resolution plan is successfully implemented.
The details of the case have been discussed below.