In the case of IBC resolutions, the government has pursued pre-CIRP liabilities, despite the law’s commitment to a clean slate.
On September 18, 2026, the Calcutta High Court directed the Income Tax Department to refund the amount it had adjusted against pre-CIRP (corporate insolvency resolution process) tax demands from a post-CIRP refund due to UltraTech Nathdwara Cement Ltd (Ultra). It also restrained the Department from initiating reassessment or other proceedings to recover pre-CIRP dues. In this case, the CIRP of Binani Cements Ltd (Binani) commenced on July 25, 2017. The National Company Law Appellate Tribunal approved the resolution plan on November 14, 2018, and the Supreme Court dismissed the challenge within five days.
The…