Himachal Pradesh High Court Affirms Clean Slate Theory, Declares Tax Authorities' Charge Over Properties After Acquisition Plan Void And Illegal

The Himachal Pradesh High Court affirmed the "clean slate theory," declaring that tax authorities' claims over properties acquired through a resolution plan under the Insolvency and Bankruptcy Code (IBC) are void and illegal. The court ruled that once a resolution plan is approved, the company emerges free from previous liabilities, including tax claims. This ruling reinforces the IBC's intent to provide companies with a fresh start post-resolution and protects them from lingering tax obligations.