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TMI Blog2022 (7) TMI 1471X X X X Extracts X X X X X X X X Extracts X X X X ..... to this appeal. Taking note of the fact that the NCLT has approved the resolution plan in the insolvency proceedings in regard to the corporate debtor, the appeals before this Tribunal are abated. - Hon ble Mr. Sanjiv Srivastava, Member (Technical) And Hon ble Mr. Ajay Sharma, Member (Judicial) For the Appellant : Shri Jay Chheda, Ms. Kirti Bhoite, Shri Tarun Govil, Advocates, for the For the Respondent : Shri S.K. Mathur, Special Counsel, for the Revenue ORDER During the pendency of these appeals the company faced financial difficulties and an application was filed by one of the financial creditors under section 7 the Insolvency and Bankruptcy Code, 2016 for recovering debts owned by the company. The National Compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors, within 175 days from the Effective Date. It is also stated that in case the liquidation value is not NIL, then such additional amounts shall be first paid out of the positive bank balance of the Corporate Debtor as on the Effective Date and the remaining amounts shall be paid out of the amounts reserved for AFCs of the Corporate Debtor on a pro rata basis. 3. In para 12 of the order NCLT has observed as follows: 12. Admittedly the Corporate Debtor ceased its operations from 17.04.2019. On the date of insolvency commencement i.e. on 20.06.2019, the Corporate Debtor was not in operation. It is not in dispute that the Corporate Debtor was not run as a going concern during the CIRP. Therefore, the protection of the licenses an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able in his case. However in view of the fact as stated in the para 4.2 and 4.3 above we are of the view that moment the successor interest with sufficient rights to be represented is appointed by the NCLT this rule will become applicable and it is for the successor interest to make an application for continuance of the proceedings. In the present case no such application has been filed by the successor interest for the continuance of the proceedings and hence the appeal stands abated by the operation of this rule. 4.6 There is no dispute to the binding nature of the resolution plan as approved by the NCLT. It has been settled by the Hon ble Apex Court in the cases referred to by the learned counsel for the applicant. Relevant paras of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the resolution plan; (i) 2019 amendment to Section 31 of the l B Code is clarificatory and declaratory in nature and therefore will be effective from the date on which I B Code has come into effect; (iii) Consequently all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the Adjudicating Authority grants - its approval under Section 31 could be continued. 4.7 CBIC has vide Instruction No.1083/04/2022-CX9 dated 23.05.2022 has laid down the guidelines (SOP) for NCLT cases. The said instructions at para-1 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch is the subject matter of the present proceedings was not lodged by the respondent No. 2 after public announcements were issued under Sections 13 and 15 of the IBC. As such, on the date on which the Resolution Plan was approved by the Learned NCLT, all claims stood frozen, and no claim, which is not a part of the Resolution Plan, would survive. 15. In that view of the matter, the appeals deserve to be allowed only on this ground. It is held that the claim of the respondent, which is not part of the Resolution Plan, does not survive. The amount deposited by the appellant at the time of admission of the appeals along with interest accrued thereon is directed to be refunded to the appellant. 4.8 However from the date of approval ..... X X X X Extracts X X X X X X X X Extracts X X X X
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