# In the matter of Ultra Tech Cement Ltd. Vs. Union of India  D.B. Civil Writ Petition No. 9480-2019

> HC judgment dated 2020-04-07. Citation: TCN-2020-HC-00034. Ultra Tech Nathdwara Cement Ltd. filed a writ petition against the Union of India and other…

- **Court:** HC
- **Order date:** 7 Apr 2020
- **Citation:** TCN-2020-HC-00034
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-chandigarh-bench/ultra-tech-cement-ltd-vs-union-of-india-db-civil-writ-petition-no-9480-2019-c042a1e8

## Summary

### Background

Ultra Tech Nathdwara Cement Ltd. filed a writ petition against the Union of India and other respondents, challenging demands for Goods and Service Tax (GST) for the period before Ultra Tech took over Binani Cements Ltd. under the Insolvency and Bankruptcy Code (IBC) 2016. Binani Cement had suffered losses and was unable to pay debts to Bank of Baroda, leading to insolvency proceedings. The Committee of Creditors (COC) approved Ultra Tech's resolution plan, which was also affirmed by the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court. Despite this, the respondents raised demands for GST, prompting Ultra Tech to file the writ petition seeking a restraint order.

## Facts

Binani Cement suffered losses and was unable to pay debts to Bank of Baroda, leading to insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC) 2016. The National Company Law Tribunal (NCLT), Kolkata Bench, initiated a Corporate Insolvency Resolution Process (CIRP). Vijay Kumar V. Iyer was appointed as the Insolvency Resolution Professional. The Committee of Creditors (COC) was constituted and approved Ultra Tech's resolution plan, which was also affirmed by the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court. The resolution professional collated claims of all operational creditors, including the respondent Goods and Service Tax Department, to the extent of Rs.72.85 crores towards liabilities of excise duty and service

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## Issues and analysis

### Issue 1: Whether the resolution plan being final and binding on all parties; whether or not they had been …

**Ratio:** Section 31 of the IBC, as amended, makes the approved resolution plan binding on all

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**Reasoning:** The court reasoned that the legislative intent behind the IBC is to provide a mechanism

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**Interpretation:** The court interpreted Section 31 of the IBC to mean that the approved

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**Application:** The court applied this ratio to the facts of the case, holding that the GST

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## Parties

- **Judges:** SANDEEP…; VIJAY BI…
- **Appellants:** Ultra Tech…
- **Respondents:** Binani Cements…; Union of…

## Timeline

- **2017-01-01 — Insolvency Proceedings…**: Insolvency proceedings initiated against Binani Cement under Section 7 of the IBC before…
- **2017-08-22 — COC Meet…**: Meeting of the Committee of Creditors (COC)…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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