Patanjali Foods Limited — Important, 18-02-2025: General Updates

The Hon’ble Supreme Court of India has dismissed the Income Tax Department's Special Leave Petition involving pre-Corporate Insolvency Resolution Process (CIRP) demands amounting to ₹186 crore. The Income Tax Department’s challenge stemmed from demands related to various assessment years, which were initially quashed by the NCLT in April 2022. The Bombay High Court also dismissed a subsequent Writ Petition filed by the Department in April 2024. This Supreme Court ruling clarifies that pre-CIRP liabilities not included in a resolution plan are extinguished, preventing further claims related to those demands. This outcome strengthens the legal position of the company regarding these disputed liabilities, potentially positively impacting its financial outlook moving forward.