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Informative

Creditors including Central Govt Barred from Recovering Omitted Pre-Resolution Dues After NCLT Approval : CESTAT dismisses Appeal

Update / Judgement Date

22 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

CESTAT (Customs, Excise, and Service Tax Appellate Tribunal) dismissed an appeal, ruling that creditors, including the Central Government, are barred from recovering omitted pre-resolution dues after the resolution plan has been approved by the NCLT (National Company Law Tribunal). This underscores the binding nature of the NCLT-approved resolution plan on all stakeholders, including government entities, regarding claims prior to the commencement of the insolvency process.