The interplay between insolvency law and tax recovery has generated considerable judicial debate, particularly after the Supreme Court’s decision in State Tax Officer v. Rainbow Papers Limited. The Madras High Court, in Avenue Realty v. Assistant Commissioner, Srirangam (GST Circle) and Others (W.A.(MD) No.2662 of 2025 and C.M.P.(MD) No.15106 of 2025, decided on 17 April 2026 by Justice N. Sathish Kumar and Justice M. Jothiraman), has advanced this discourse by distinguishing corporate insolvency resolution from liquidation, and by giving effect to the retrospective clarificatory amendment to Section 3(31) of the Insolvency and Bankruptcy Code, 2016.
The subject property belonged to RLS Alloys Private Limited, the corporate debtor….