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TMI Blog2024 (6) TMI 1148X X X X Extracts X X X X X X X X Extracts X X X X ..... ding the Central Government, any State Government or any local authority, guarantors and other stake holders. On the date of approval of Resolution Plan by the adjudicating authority, all such claims, which are not part of the 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. As to be noted that the principle of clean slate has been time and again reiterated and reaffirmed by the Supreme Court as well as by this Court. Thus, upon approval of a Resolution Plan or sale as going concern, is duly approved by the adjudicating authority, all the previous liabilities and claims of any person qua the corporate debtor, cea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide order dated 06th December, 2021. Learned counsel appearing for the petitioner submits that the impugned order and notice dated 23rd May, 2024 is legally untenable and in teeth of the provisions of Insolvency and Bankruptcy Code ( IBC ), 2016, which envisages revival/ resolution of the Company on a Clean Slate Basis . 5. At this stage, learned counsel appearing for the petitioner submits that by way of the impugned notice, penalty is being sought to be imposed upon the petitioner. He further submits that the respondent has fixed the matter for today, i.e., 24th June, 2024 for assessing the penalty to be imposed upon the petitioner. Thus, it is submitted that there is urgency in the matter. 6. None appears for the respondents despite ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he extinguishment of all the past dues and claims not forming part of the Resolution Plan on the date of approval, was accorded. 10. This Court further notes that upon approval of the Resolution Plan, a new management took over the petitioner-company, in order to implement the Resolution Plan as per the scheme of IBC, on a Clean Slate Basis . 11. It is settled proposition of law that once a Resolution Plan is duly approved by the adjudicating authority under Section 31 (1) of IBC, 2016, the claims as provided in the Resolution Plan shall stand frozen and it 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 stake h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the I B Code is providing for revival of the corporate debtor and to make it a going concern. The I B Code is a complete Code in itself. Upon admission of petition under Section 7 there are various important duties and functions entrusted to RP and CoC. RP is required to issue a publication inviting claims from all the stakeholders. He is required to collate the said information and submit necessary details in the information memorandum. The resolution applicants submit their plans on the basis of the details provided in the information memorandum. The resolution plans undergo deep scrutiny by RP as well as CoC. In the negotiations that may be held between CoC and the resolution applicant, various modifications may be made so as to ensure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4. We also take note of the identical position which was expressed by the Supreme Court in Essar Steel India Ltd. Committee of Creditors v. Satish Kumar Gupta, [(2020) 8 SCC 531] where the following pertinent observations came to be made :- 105. Section 31 (1) of the Code makes it clear that once a resolution plan is approved by the Committee of Creditors it shall e binding on all stakeholders, including guarantors. This is for the reason that this provision ensures that the successful resolution applicant starts running the business of the corporate debtor on a fresh slate as it were. In SBI v. V. Ramakrishnan, (2018) 17 SCC 394, this Court relying upon Section 31 of the Code has held: 25. Section 31 of the Act was also strongly relied upo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... add that we are saying nothing which may affect the pending litigation on account of invocation of these guarantees. However, NCLAT judgment being contrary to Section 31 (1) of the Code and this Court's judgment in SBI v. V. Ramakrishnan, (2018) 17 SCC 394, is set aside. 107. For the same reason, the impugned NCLAT judgment [ Standard Chartered Bank v. Satish Kumar Gupta, 2019 SCC OnLine NCLAT 388] in holding that claims that may exist apart from those decided on merits by the resolution professional and by the Adjudicating Authority/Appellate Tribunal can now be decided by an appropriate forum in terms of Section 60(6) of the Code, also militates against the rationale of Section 31 of the Code. A successful resolution applicant cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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