The High Court held that the Execution Application filed by the ...

IBC's Resolution Plan trumps creditor claims: Operational creditor's execution plea rejected after corporate revival.

December 7, 2024

Case Laws IBC HC

The High Court held that the Execution Application filed by the Applicant against the Respondent does not survive due to the approved Resolution Plan under the Insolvency and Bankruptcy Code (IBC). As per the Supreme Court's ruling in Ghanshyam Mishra case, once a Resolution Plan is approved by the Adjudicating Authority u/s 31(1) of the IBC, all claims not part of the Resolution Plan stand extinguished. No proceedings can be initiated or continued for claims not included in the approved Resolution Plan. The Respondent's Resolution Plan was approved by NCLT on March 5, 2020, and upheld by NCLAT on July 6, 2023. The Applicant's claim, being an operational creditor's claim prior to the Resolution Plan approval date, is entitled to NIL payment under paragraph 27 of the approved Plan. Therefore, the claim stands rejected and extinguished, rendering the Execution Application infructuous. Consequently, the High Court dismissed the Execution Application and connected Notice.

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The High Court held that the Execution Application filed by the ...

IBC's Resolution Plan trumps creditor claims: Operational creditor's execution plea rejected after corporate revival.

December 7, 2024

Case Laws IBC HC

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