Once Resolution Plan has approved by NCLT Commercial Tax Department cannot create further dues: Allahabad HC

The Allahabad High Court has ruled that "once a resolution plan has been approved by the NCLT, the Commercial Tax Department cannot create further dues." The court's decision reinforces the "clean slate" principle of the IBC. Once a resolution plan is approved, it is binding on all creditors, including government departments. This ruling provides critical finality to the resolution process and prevents tax authorities from making further demands, which can jeopardize the viability of the plan.