Allowing the petition, the Court held that the Department is bound by the resolution plan and barred from enforcing extinguished claims. Demand raised beyond plan period void. Plan approved by adjudicating authority binding on all stakeholders, including Central and State Governments and local authorities. Claims not forming part of plan extinguished. No creditor, including tax authorities, entitled to assert a claim outside approved plan. Assessment order and demand notice for pre-corporate insolvency resolution process period unenforceable after approval of resolution plan. Writ maintainable notwithstanding availability of statutory appeal. (AY. 2012-13)
Sree Metaliks Ltd. v. UOI (2026) 486 ITR 207 (Orissa)(HC)
S. 143(3): Assessment–Recovery of tax-Insolvency resolution Resolution plan-Department bound by resolution plan and barred from enforcing extinguished claim Demand raised beyond plan period void Plan approved by adjudicating authority binding on all stakeholders including Central and State Governments and local authorities Claims not forming part of plan extinguished No creditor including tax authorities entitled to assert claim outside approved plan-Assessment order and demand notice for pre-corporate insolvency resolution process period unenforceable after approval of resolution plan-Alternative remedy-Writ maintainable notwithstanding availability of statutory appeal-[S. 156, 226,246A, Insolvency and Bankruptcy Code, 2016, 31(1), 238, Art. 226, Order XLVII, Rule 1 of the Code of Civil Procedure, 1908.]
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