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TMI Blog2024 (5) TMI 685X X X X Extracts X X X X X X X X Extracts X X X X ..... e proceedings have commenced by institution of application under section 7 or 9 or 10 of the Code, the continuance of the pending proceedings is prohibited and when once they reach the logical conclusion with due approval of the resolution plan by the Adjudicating Authority u/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. At any rate, for the time being, this appeal cannot be proceeded with during the continuance of the proceedings under the Code. Depending upon the result of such proceedings before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d four appeals of the assessee, we proceed to dispose of the same by this common order. 3. For the sake of convenience and clarity, the facts relevant to the appeal in ITA No.182/NAG/2022 for the assessment year 2010-11 are stated herein. ITA No.182/NAG/2022, A.Y. 2010-11 : 4. At the outset, it is evident from the record that the Corporate Insolvency Resolution Proceedings (CIRP) are pending against the assessee and as of now, Hon'ble National Company Law Appellate Tribunal (NCLAT) is seized with the jurisdiction. 5. We have considered the issue in the light of the provisions of Insolvency and Bankruptcy Code, 2016 ( the Code ) and the decision of the Hon'ble Apex Court in the case of Ghanashyam Mishra And Sons vs. Edelweiss Asset R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eedings 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. 6. A reading of the provisions under section 13 and 14 of the Code along with the decision in Ghanashyam Mishra And Sons (supra), clearly shows that once the proceedings have commenced by institution of application under section 7 or 9 or 10 of the Code, the continuance of the pending proceedings is prohibited and when once they reach the logical conclusion with due approval of the resolution plan 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 employe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 amendment to Section 31 of the I B Code is clarificatory and declaratory in nature and therefore will be effective from the date on which I B Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to a claim, which is not a part of the Resolution Plan. The expression that no person will be entitled to initiate any proceedings would include the proceedings in the nature of notice issued under Section 148 of the Income Tax Act, 1961. 18. As we understand from the above rulings, the aim and object of IBC is to revive the Corporate Debtor by putting quietus to the claims against it. Providing certainty to the Resolution Applicant of no claims in future against the Corporate Debtor appears to be the essence of the Resolution Plan. Such inference could further be substantiated on the ground that the provisions of the IBC (Section 238 of IBC) have an overriding effect, if there is any inconsistency with any of the provisions of the law for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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