TMI Blog2025 (1) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Apex Court in the case of Edelweiss applies fully and squarely to the facts of the present case. Therefore, no new customs duty, interest or penalty which has been proposed by the respondent can be levied, once the resolution plan stands approved. Conclusion - i) Once a resolution plan is approved under Section 31 of the IBC, all claims not included in the plan are extinguished. ii) The IBC s provisions override other laws, including the Customs Act, regarding claims extinguished by a resolution plan. Appeal allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... , in the facts and circumstances of the present case; d) Award cost of the present petition." 4.1. A Company Petition (I.B.) No. 199 of 2018 was filed by Financial Creditor namely, M/s. J. M. Financial Asset Reconstruction Company Ltd under Section 7 of Insolvency and Bankruptcy Code, 2016 (herein after referred to as "IB Code") for initiation of Corporate Insolvency Resolution Process before the Ld. National Company Law Tribunal, Ahmedabad Bench (hereinafter referred to as "NCLT"). 4.2 Accordingly, the IRP, Mr. Hiten M Parikh invited claims against the Petitioner through a public advertisement dated 02.08.2019. It is submitted that subsequent to such public announcement, all the persons/ departments/ companies/ co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 021, the petitioner issued three Demand Drafts of Rs. 10,05,249/- to the Commissioner of Customs (Export). However, since the said Demand Drafts were not deposited by Commissioner of Customs (Export), the same got expired. In view of the above, vide letter dated 28.03.2022, Commissioner of Customs (Export), Mumbai requested Petitioner to issue fresh Demand Drafts vide letter dated 28.03.2022. In view of the above, the petitioner has issued fresh Demand Drafts dated 06.04.2022. These Demand Drafts are encashed by Commissioner of Customs (Export), Mumbai. 4.7. Thereafter, the Respondent has passed impugned order dated 19.01.2023 under Customs Act, 1962 confirming the demand of customs duty and imposing penalty on the Petitioner on account di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which had not attained finality by way of issuing order by the Commissioner of Customs and therefore, on the date of issuance of the order for "approval of resolution plan" under section 31 of the IBC, there was no existing debt or claim against the petitioner and therefore, the order for "approval of resolution plan" under Section 31 (1) of the IBC is not applicable to the present case and therefore, the decision of the Apex Court in the case of Edelweiss (Supra) will not be applicable in the facts of the case. 7. DISCUSSIONS & FINDINGS :- The resolution plan, which has been approved under Section 31 (1) of the IBC, in the instant case, as annexed to the present petition at Annexure "E" contains, inter-alia, the following clauses of im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing claims recognized in this Resolution Plan and claims that may arise in future), shall exceed the Liquidation Value. It is also clarified that following the approval of the Resolution Plan, all liabilities (except for the liabilities in the Information Memorandum and as provided for in this Resolution Plan, of the Company) whether recorded in its books or otherwise, will be extinguished. No further claims, either against the Company or against the Resolution Applicant will be permitted to be brought once the Plan has been approved and implementation has commenced. All claims that may arise in the future, including any claims from dues arising under any law for the time being in force and payable to the Central Government, any State Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 138 In the forgoing paragraph, we have held that the 2019 Amendment to Section 31 IBC is clarificatory and declaratory in nature and therefore will have a retrospective operation. As such, when the resolution plan is approved by NCLT, the claims, which are not part of the resolution plan, shall stand extinguished and the proceedings related thereto shall stand terminated. Since the subject-matter of the petition are the proceedings which relate to the claims of the respondents prior to the approval of the plan, the same cannot be continued. Equally the claims, which are not part of the resolution plan, shall stand extinguished. 9. A reading of the aforesaid paragraphs of the Hon'ble Apex Court judgment in the case of Edelweiss (Supra) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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