Initiating Tax Proceedings After CIRP Approval Violates Section 31 IBC: Bombay High Court

The Bombay High Court ruled that tax proceedings initiated after the approval of a Corporate Insolvency Resolution Plan (CIRP) under Section 31 of the Insolvency and Bankruptcy Code (IBC) are not maintainable. The Court emphasized that once a resolution plan is approved, it binds all stakeholders, including tax authorities. The ruling aims to provide clarity on the finality of resolution plans and ensure that they are not undermined by subsequent tax proceedings. The decision underscores the importance of maintaining the integrity of the insolvency resolution process and protecting the interests of all stakeholders.