Claims and dues not included in the resolution plan approved by the NCLT stand extinguished

Last updated: 31 December 2025

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The GSTAT Delhi has ruled that once a resolution plan is approved by the NCLT under the Insolvency and Bankruptcy Code (IBC), any claims or dues not included in that plan are extinguished. This means a Resolution Applicant cannot be held liable for unquantified Input Tax Credit (ITC) benefits that were not passed on by the previous company. The decision effectively closes anti-profiteering proceedings against the company in such circumstances, reinforcing the 'fresh slate' principle for new owners.

Court :
GSTAT Delhi

Brief :
The GSTAT Delhi in the case of DGAP v. Puma Realtors Pvt Ltd, [NAPA/84/PB/2025, order dated August 26, 2025], held that once a resolution plan is approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC), 2016, all claims and dues not included in the resolution plan stand extinguished, and consequently, the Resolution Applicant cannot be held liable for unquantified Input Tax Credit (ITC) benefits not passed on by the previous entity under Section 171 of the CGST Act, 2017. The anti-profiteering proceedings against Puma Realtors Pvt Ltd were therefore closed.

Citation :
NAPA/84/PB/2025, order dated August 26, 2025

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Attached File : 671907_5934_puma_realtors_pvt_ltd.pdf

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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