Impleadment Of GST Authorities Not Permissible In Proceedings U/S 9 Of IBC Merely Due To Allegations Of Bogus Invoices: NCLT Allahabad

The National Company Law Tribunal (NCLT), Allahabad Bench of Shri Praveen Gupta, (Hon'ble Member Judicial) and Shri Ashish Verma (Hon'ble Member Technical)  has held that impleadment of the GST Authorities in proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), is not permissible merely on the ground that the invoices on which the petition is based have been disputed by the Corporate Debtor. The GST Authorities are independent bodies conducting investigations in accordance with law and, therefore, have no connection with proceedings under the IBC.

The present application has been filed seeking impleadment of the GST Authorities as Respondents No. 2 to 5.

The impleadment of the Authorities is sought on the ground that invoices annexed with the original application are bogus involving no actual delivery of goods. 

Per contra, the Respondent submitted that ongoing investigations are related to a different entity and is not related to the present case in any manner. The GST returns evidencing payment have already been submitted. The criminal complaint came to be filed by the director of the corporate debtor after issuance of a demand notice. The GST inquiry has no connection with the disputed invoices in the present matter.

The Tribunal held that the GST Authorities are independent bodies conducting their investigations under the law and are neither necessary parties nor relevant parties for the purpose of deciding the petition under section 9 of the IBC.

Accordingly, the present application seeking impleadment of the GST Authorities was rejected.

Case Title: M/S SUNDER ENGINEERING WORKS V/S MACHINERY LIMITED 

Case Number:IA No.17/2024, IA No.150/2024 & IA No.345/2024 IN CP (IB) No.101/ALD/2022 

Order Date: 8/07/2025