The Delhi High Court on Wednesday said government authorities cannot remain outside a company’s insolvency process and later seek recovery of old dues after the resolution plan is approved.
The ruling relates to the customs department’s claims for digital and network video recorders imported by Jaiprakash Associates in September 2023, before the company entered insolvency on 3 June 2024. The department, which did not file its claim during the insolvency process, alleged on 2 June 2026 that the company had paid basic customs duty at 10% instead of 20% and sought ₹589,000 in additional customs duty, along with interest and penalty.
Jaiprakash Associates later challenged the order in the high court.
The court said that creditors,…