In a recent case1, the Chandigarh Bench of the National Company Law Tribunal (NCLT) upheld the delayed claim submitted by the Income Tax Authorities (the Department) and directed the liquidator to consider the claim of the Department. In the current case, the insolvency resolution process was initiated against Tara Chand Rice Mills Private Limited (Corporate Debtor), and due to the failure of the resolution process, the liquidation process was initiated. This alert summarizes the key aspects of the aforesaid ruling.
