Supreme Court Dismisses Special Leave Petition of Income Tax Department, Exempting Patanjali Foods from Pre-CIRP Liability of Rs. 186 Crores

Patanjali Foods Ltd. has announced that the Hon'ble Supreme Court of India has dismissed the Special Leave Petition filed by the Income Tax Department, thereby extinguishing the pre-Corporate Insolvency Resolution process (CIRP) liability of Rs. 186 crores. The Income Tax Department had raised these demands for various assessment years, which were challenged by the Deptt. before the Hon'ble NCLT and the Bombay High Court. However, both courts quashed the demand notices. The Deptt. then filed a Special Leave Petition against the Bombay High Court order. The Supreme Court's judgment reaffirms that pre-CIRP liability, if not forming part of the claims, stands extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan.