GST liability becomes operational debt post-CIRP; NCLAT upholds claim transfer to private creditor — Ellison Oil appeal dismissed

The NCLAT ruled that GST liabilities crystallised during the CIRP can be treated as operational debt and upheld the transfer of such claims to private creditors, dismissing Ellison Oil’s appeal. This decision clarifies that statutory tax dues are enforceable within IBC proceedings when debt and default are established. It impacts claim admission, priority in the distribution waterfall, and strategic recovery by creditors. Tax authorities, resolution professionals, and private investors are affected, as it signals enforceability of tax claims during insolvency. The ruling sets a precedent for integrating statutory claims into the CIRP framework and provides guidance on claim assignability and creditor rights in operational debt recovery under IBC.