Upon approval of the Resolution Plan by the NCLT, it is binding ...

Bankruptcy court approves resolution plan, govt demands for pre-plan period extinguished.

October 14, 2024

Case Laws     IBC     HC

Upon approval of the Resolution Plan by the NCLT, it is binding on all creditors, including the Central and State Governments, u/s 31 of the Insolvency and Bankruptcy Code. The demands raised against the Petitioner-Company pertaining to the period prior to the Plan Effective Date stand automatically extinguished. The Opposite Parties are directed to revise the demands by limiting them to the period from the Plan Effective Date onwards and raise them afresh against the Petitioner-Company in accordance with the law. The impugned letters raising demands covering the period up to the Plan Effective Date are set aside as unsustainable in law.

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