- 1 - HC-KAR NC: 2026:KHC:30928 WP No. 9370 of 2022 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 22ND DAY OF JUNE, 2026 BEFORE THE HON'BLE MR. JUSTICE B M SHYAM PRASAD WRIT PETITION NO. 9370 OF 2022 (LB-BMP) BETWEEN: INDO ENVIRO INTEGRATED SOLUTIONS LIMITED (FORMERLY IL AND FS ENVIRONMENTAL INFRASTRUCTURE AND SERVICES LIMITED) A COMPANY INCORPORATED UNDER THE COMPANIES ACT 1956 HAVING ITS REGISTERED OFFICE AT 217-A, OKHLA INDUSTRIAL AREA PHASE-III, NEW DELHI-110020 REPRESENTED BY ITS AUTHORISED REPRESENTATIVE MAYURI VATS …PETITIONER (BY SMT. SUSHMA NAGARAJ, ADVOCATE) AND: 1. CHIEF COMMISSIONER BRUHAT BENGALURU MAHANAGARA PALIKE PALIKE OFFICES N R SQUARE BANGALORE KARNATAKA-560002 2. EXECUTIVE ENGINEER (PROJECT) BRUHAT BENGALURU MAHANAGARA PALIKE BBMP HEAD OFFICE N R SQUARE Digitally signed by VANAMALA N Location: HIGH COURT OF KARNATAKA - 2 - HC-KAR NC: 2026:KHC:30928 WP No. 9370 of 2022 BENGALURU KARNATAKA-560002 3. M/S. GRANT THORNTON INDIA LLP 16TH FLOOR, TOWER-II INDIA BULLS FINANCE CENTRE S.B. MARG, ELPHINSTON (W) MUMBAI - 400 013 …RESPONDENTS (BY SRI. MILIND DANGE, ADVOCATE FOR R1 & R2; SMT. SHWETAANK NIGAM, ADVOCATE FOR R3) THIS W.P. IS FILED UNDER ARTICLES 226 AND 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO-SET ASIDE THE IMPUGNED ORDER DTD 25.02.2022 PASSED BY THE R1 IN REFERENCE NO.03 OF 2021 BETWEEN THE R2 AND THE PETITIONER (AT ANNEXURE-A) CONSEQUENTLY, SET ASIDE THE DEMAND NOTICE DTD 29.03.2022 ISSUED BY THE R2 TO THE PETITIONER AT ANNEXURE-B. THIS PETITION, COMING ON FOR ORDERS, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: CORAM: HON'BLE MR. JUSTICE B M SHYAM PRASAD - 3 - HC-KAR NC: 2026:KHC:30928 WP No. 9370 of 2022 ORAL ORDER The petitioner has acquired IL & FS Environmental Infrastructure and Services Limited on completion of the resolution process approved by the National Company Law Appellate Tribunal [NCLAT]. The petitioner is aggrieved by the order dated 25.02.2022. This order is by the Chief Commissioner, Bruhat Bengaluru Mahangara Palike [BBMP] [now Greater Bengaluru Authority] which permits the recovery of Rs.17,22,88,460/- from the petitioner. The BBMP’s claim for this amount is because of an asserted actionable claim for the injury suffered [damages to the equipment in a Solid Waste Management plant in the year 2016] and for consequential damages. 2. This Court, on 10.08.2022, has stayed the operation of the demand and this order is continued from time to time with this Court, on 22.03.2024, calling upon the BBMP to explain how it could rely - 4 - HC-KAR NC: 2026:KHC:30928 WP No. 9370 of 2022 upon the impugned order if it proposes to continue with a claim filed with the Claim Management Advisory. It is now placed on record that this claim is based on the impugned order dated 25.02.2022. These are essential facts in a nutshell, and the outcome in the writ petition must be in the light of the National Company Law Tribunal's [NCLT] order dated 07.05.2024 on an application in C.A.No.391/2023 and in the subsequent proceedings for execution of the right conferred in the order dated 07.05.2024. 3. Ms. Sushma Nagaraj, the learned counsel for the petitioner, and Mr. Milind Dange, the learned Standing Counsel for the BBMP, are heard. This Court must observe that the NCLT in its Order dated 07.05.2024 has categorically opined [a] that the BBMP's claim relates to a period prior to the cut-off date [15.10.2018], [b] that the Claim Management Advisory could not have refused to consider that the - 5 - HC-KAR NC: 2026:KHC:30928 WP No. 9370 of 2022 petitioner, a successful buyer, cannot be fastened with liabilities or obligations arising upto the period of sale because the sale is on a Clean Slate Principle, and [c] that the petitioner as a buyer cannot be fastened with liability for the period prior unless it has specifically agreed to answer such liabilities. The NCLT has also stipulated that the third respondent must admit the BBMP’s claim and settle the same under the Distribution Framework approved for the purpose. 4. This Court must observe that an important part of this condition is that the BBMP’s claim must be settled from the sale proceeds available and that in case the proceeds are distributed, no relief can be granted to the BBMP. When this order is put into execution, the NCLT has reiterated that the petitioner [the New Management] cannot be made liable to pay any past dues which have to be settled under the approved Distribution - 6 - HC-KAR NC: 2026:KHC:30928 WP No. 9370 of 2022 Framework and if there is any Creditor's due, such as those claimed by the BBMP, which remain unsatisfied, such credit is extinguished. The NCLT dismissing the execution application has further stated that the BBMP [being one of the Creditors], is entitled to know how and in what manner payments to the Creditors are settled, but because the original entity [IL & FS], is not a party to the execution, no relief can be granted. 5. Ms. Sushma Nagaraj, relying upon these circumstances, submits that the petition must stand disposed of with Mr. Milind Dange submitting that this Court must not set aside or jettison the impugned order because the BBMP is pursuing the relief against the orders in the execution proceedings and that even the NCLT's order dated 07.05.2024 recognizes the BBMP’s claim for the amounts covered under the impugned order. - 7 - HC-KAR NC: 2026:KHC:30928 WP No. 9370 of 2022 6. The question for consideration is should this Court dispose of this petition observing that the impugned order could be enforced against the petitioner. The NCLT's order dated 07.05.2024 is categorical, and this order is not called in question. The petitioner has stepped into the shoes of the original entity on a Clean Slate Principle. It cannot be made liable for those dues that were not settled as of the cut-off date, and the Creditors will only be entitled to claim the amounts from the proceeds applied under the Distribution Framework. The BBMP therefore cannot proceed against the petitioner based on the impugned order. The question for consideration is answered accordingly, and the petition stands disposed of. Sd/- (B M SHYAM PRASAD) JUDGE RB