NCLT Mumbai Clears Auction Buyer of Past Municipal Dues in AJS Impex Liquidation
Court / Authority
NCLT & NCLAT
Update / Judgement Date
08 Jul 2026
Source
WCP News Bulletin
Author
Manas Yadav — WCP Legal Desk
Reading Time
1 min read
View Count
1
Background
The National Company Law Tribunal, Mumbai Bench-I, has ruled that Aurashine Essentials Pvt. Ltd., which purchased a commercial unit of AJS Impex Private Limited through a liquidation e-auction, cannot be held liable for past property tax dues owed by the corporate debtor to the Brihanmumbai Municipal Corporation (BMC). The Tribunal held that statutory dues relating to periods before the sale form part of the liquidation estate and must be settled under the waterfall mechanism of Section 53 of the Insolvency and Bankruptcy Code, not recovered from the auction purchaser. Since BMC had not filed any claim in the liquidation process, it was directed to approach the liquidator instead of enforcing recovery against the buyer.
However, the NCLT declined to intervene on the administrative issue of allotting a separate property tax number, leaving it to BMC’s internal procedures.
The order reinforces the “clean slate” principle for purchasers of assets in insolvency liquidation.
Full Judgement / Attachment
Full Judgement
Frequently asked questions about NCLT & NCLAT
- What are the NCLT and NCLAT?
- The National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT) were constituted on 1 June 2016 under the Companies Act, 2013. The NCLT sits in benches across India, and the NCLAT hears appeals from it, with its principal bench in New Delhi and a bench in Chennai.
- What cases does the NCLT hear?
- The NCLT is the Adjudicating Authority for corporate insolvency under the IBC. It also hears company law matters, including oppression and mismanagement petitions, schemes of merger and demerger, reduction of capital, and class action suits.
- What is the time limit to appeal an NCLT order to the NCLAT?
- Under the Companies Act, the appeal is due within 45 days, extendable by up to 45 days. Under the IBC, it is due within 30 days, extendable by up to 15 days. These outer limits are strictly applied.
- How can I check NCLT case status or orders?
- Case status, cause lists and orders are available on the NCLT website (nclt.gov.in) and the NCLAT website (nclat.nic.in), searchable by case number, party name or bench.
- How can White Collar Professional help with a NCLT or NCLAT matter?
- Post your requirement on White Collar Professional to receive proposals from verified Company Secretaries, Insolvency Professionals and Advocates, compare them, and pay securely through the platform. This page also tracks the latest NCLT or NCLAT NCLT and NCLAT judgements as they are reported.
