Acquisition Agreement During Liquidation Extinguishes Pre-CIRP Claims and Contract Termination Rights Under IBC Section 31

HC determined that the petitioner's challenge to contract termination by Union of India was untenable. The Corporate Debtor's business and assets were acquired by Mr. Swapnil Waghchoure through an Acquisition Agreement during liquidation proceedings. Following IBC principles and precedent from Ghanshyam Mishra case, all prior claims not included in resolution plans stand extinguished. Evidence showed that government departments had terminated contracts before CIRP initiation, with pending recovery notices exceeding INR 100 Crore. While NCLT had temporarily stayed government actions on terminated contracts, the petitioner ceased to exist post-acquisition. The HC concluded that since the original contracting entity no longer existed and contracts were validly terminated pre-CIRP, the petition lacked merit and was accordingly dismissed. .....

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