Tax Department Can't Create Charge On Property Of Corporate Debtor During Currency Of Moratorium Imposed By NCLT: Himachal Pradesh HC

The Delhi High Court ruled that once a corporate debtor is liquidated by the National Company Law Tribunal (NCLT), no further legal proceedings can be initiated against it by tax authorities. This decision affirms that the liquidation process under the Insolvency and Bankruptcy Code (IBC) takes precedence over any subsequent legal claims, including those related to taxes. The judgment reinforces the finality of the liquidation process, offering clarity on the treatment of tax liabilities during insolvency.