High Court Says No GST Attachment on Properties Bought in IBC Liquidation
Avenue Realty successfully bid Rs. 10.35 crore for a property during an e-auction held by the Liquidator of RLS Alloys. The sale was finalized under the Insolvency and Bankruptcy Code (IBC), and a Sale Certificate was issued. However, the victory was short-lived. When the company tried to register the property, they discovered the GST Department had already attached it to recover Rs. 7.29 crore in old debts owed by the previous owner before it went into liquidation.
The purchaser initially lost their case before a Single Judge, who refused to lift the attachment. This led to an urgent appeal before the Division Bench to decide if a buyer should be held…