India Entry & Business Startup Consultings

Ultra Tech Nathdwara Cement Ltd. v. Union of India- (D.B.CW-9480/2019)

Ultra Tech Nathdwara Cement Ltd. v. Union of India- (D.B.CW-9480/2019)

Ultra Tech Nathdwara Cement Ltd. (formerly known as Binani Cement) suffered huge losses and was unable to pay the debts to the Financial Creditor i.e., Bank of Baroda, which preferred an insolvency application before the NCLT, Kolkata Bench/Adjudicating Authority under Section 7 of the IBC, 2016. A Corporate Insolvency Resolution Process was initiated by the NCLT under the provisions of the IBC 2016. It was held by the NCLT that the impugned demand notices are ex-facie illegal, arbitrary and per-se cannot be sustained.

Any further demands pending as on the finalization of the resolution plan issued/raised by the respondents CGST Department, Govt. of India are quashed and struck down. The authorities should have adopted a pragmatic approach and should have immediately withdrawn the demands rather than indulging in a totally frivolous litigation, thereby adding unnecessarily to the overflowing dockets of cases in the courts. Hence, the writ petition is allowed accordingly. No order is there as to costs.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

 

SUBSCRIBE OUR NEWS LETTER