NCLT Kochi Dismisses GST Department's Plea to Include Belated ₹6.06 Crore Claim In SDF Industries Insolvency

The National Company Law Tribunal (NCLT) at Kochi has dismissed the tax department's plea to include a Rs 6.06 crore belated GST claim in the insolvency process of SDF Industries Limited, holding that claims cannot be entertained after approval of the resolution plan by the Committee of Creditors.

A coram of Judicial Member Vinay Goel held that permitting the tax department to raise its claim at such a stage would reopen settled stages of the corporate insolvency resolution process and undermine the process.

Emphasising the need for finality, the tribunal said that allowing statutory authorities to file claims after CoC approval would cause serious prejudice to the successful resolution applicant and other stakeholders.

"This Adjudicating Authority is of the considered view that allowing the Applicant, being a statutory authority, to raise its claim after the Resolution Plan has been approved by the Committee of Creditors would reopen settled stages of the CIRP and undermine the resolution process, resulting in serious prejudice to the successful resolution applicant and other stakeholders.", it said.

Insolvency proceedings against SDF Industries Limited were initiated in April 2025, and an interim resolution professional was appointed. The Assistant Commissioner of Central Tax and Central Excise later approached the Tribunal after its claim for GST dues was rejected by the IRP.

The department stated that a show cause notice had been issued to the company for short payment of GST for the period between November 2017 and September 2021, culminating in an adjudication order dated November 28, 2024, confirming tax dues of Rs 2.11 crore. This later formed part of a total claim of Rs 6.06 crore, including interest and penalty.

According to the department, it could not file its claim within the prescribed time, as it was initially unaware of the insolvency proceedings and approval of government dues required time. The claim was eventually filed on September 30, 2025, but was rejected on the ground that the resolution plan had already been approved by the Committee of Creditors on September 8, 2025.

The resolution professional, however, objected, arguing that the claim was not only belated but also not filed in the prescribed form.

Relying on decisions of the Supreme Court and the NCLAT, the tribunal observed that the insolvency process is strictly time-bound and that delayed claims cannot be entertained at this stage.

It noted that the department filed its claim after a delay of 179 days and held that subsequent developments in the insolvency process would not revive a belatedly rejected claim.

“If we permit such type of belated claims, the entire scheme and spirit of the IBC would collapse,” the Tribunal observed.

Accordingly, the application was dismissed as not maintainable.

For Applicant: Advocate Rajeev

For Respondents: Advocate A.C Venugopal