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TMI Blog2022 (8) TMI 1459X X X X Extracts X X X X X X X X Extracts X X X X ..... e that plan has been successfully implemented and consequently change in control and ownership of the respondent has taken place with effect from 18.12.2019 and there is no involvement of any erstwhile promoters and erstwhile directors on the Board of Directors of respondent. In view of provisions of Section 32A of the IBC which clarifies that upon completion of corporate insolvency resolution process, even liability of corporate debtor for an offence committed earlier would cease and hence the appellant department cannot proceed further with the present appeal in absence of any claim lodged with the Resolution Professional during the insolvency resolution process before the NCLT. Taking into consideration the fact of the completion of the resolution process of the respondent by the NCLT and undisputed fact that the appellant has not lodged any claim in the capacity of the Operational Creditor before the Resolution Professional, this appeal is required to be disposed of as having become infructuous and abated with regard to any liability of any nature whatsoever having extinguished in view of the implementation of the Resolution Plan and change in management and control of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... application of the Standard Chartered Bank under section 7 of the IBC for initiation of Corporate Insolvency Resolution Process (For short CIRP ) came to be admitted by the adjudicating authority on 15.12.2017. It was submitted that after the proceedings as required under the various provisions of the IBC was completed and application under section 30(6) of the IBC was filed by the Resolution Professional for grant of approval of the Resolution Plan of the successful Resolution Applicant. By order dated 24.07.2019 followed by order dated 4.09.2019, the application of the Resolution Professional was allowed by NCLT approving the Resolution Plan and accordingly, the management of M/s. Ruchi Soya Industries Limited came to be vested in the successful Resolution Applicant i.e. M/s. Patanjali Foods Limited. 4.2) It was submitted that the appellant Commissioner of Customs admittedly did not lodge any claim before the Resolution Professional after public notices were issued under sections 13 and 15 of the IBC and as such, the present appeal is required to be dismissed only on that ground without going into the merits. 4.3) In support of his submissions, learned advocate Mr. Raval r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re owed, have been brought under the umbrella of the Resolution Plan approved by the adjudicating authority which has been made binding on such Governments and local authorities and once the offer of the Resolution Applicant is accepted and the Resolution Plan is approved by the appropriate authority, the same is binding on all concerned to whom the industry concerned may be having statutory dues. 4.8) Reference was also made by learned advocate Mr. Raval upon the provisions of section 238 of IBC to submit that the provisions of IBC will have overriding effect that if there is any inconsistency with any of the provisions of the law for the time being in force or any instrument having effect by virtue of any such law, provisions of the IBC would prevail. 4.9) It was therefore, submitted that with successful implementation of the Resolution Plan and change in the management and control and keeping in view the beneficial provisions of sections 32A and 31 of the IBC, the entire appeal has become infructuous and consequently, stands abated as any and all liability of any nature whatsoever of the appellant stands extinguished permanently. 5. On the other hand, learned advocate M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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. 8. In the facts of the present case also, no claim was filed by the appellant-Commissioner of Customs with regard to demand after the issuance of the notice under IBC for initiation of the resolution process before the Resolution Professional. 9. In terms of the provisions of the IBC, Resolution Plan was approved by the Committee of Creditors on 20.04.2019 and thereafter the same was approved by NCLT and the corporate insolvency resolution process was completed on 6.09.2019. It is also not in dispute that plan has been successfully implemented and consequently change in control and owne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Government, any State Government or any local authority to whom a debt in respect of the payment of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed .. 13. The Hon ble Apex Court in case of Ghanashyam Mishra and Sons v. Edelweiss Asset Reconstruction reported in (2021) 9 SCC 657, while dealing with such issues and provisions of the IBC held as under : 102. In the result, we answer the questions framed by us as under: 102.1. That once a resolution plan is duly approved by the Adjudicating Authority under sub-section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan; 102.2. 2019 am ..... X X X X Extracts X X X X X X X X Extracts X X X X
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