Taxes recovered by a corporate debtor in the name of tax from its customers do not qualify as ‘operational debt’ under IBC. Such taxes can be recovered even if no claim is made by Government during CIRP.
Amendment to Section 31 of IBC w.e.f. 16th August 2019 to make resolution plans binding on governments for dues under any law is prospective in application. It does no apply on resolution plans approved before such date.
Since public announcement of CIRP was not made in a local newspaper in the State of registered office (Jharkhand), Jharkhand State government would not qualify the phrase ‘stakeholders involved in the resolution plan’, hence resolution plan is not binding on such State Government dues.