The Delhi bench of the National Company Law Appellate Tribunal (NCLAT) quashed a resolution plan for Twenty-First Century Castings Pvt. Ltd., noting violations of the Insolvency and Bankruptcy Code (IBC), 2016, and failure to settle statutory dues owed to the Gujarat State Tax Department.
The main issue in this case was whether government tax dues should be treated as secured debt under the IBC.
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Coming to the facts of the case, M/s Harsh Foundry Fluxes & Alloys initiated insolvency proceedings against Twenty First Century Castings Pvt. Ltd. (the corporate debtor) under Section 9 of the Insolvency and Bankruptcy Code.
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