The High Court accepted the petitioner’s submissions, and said that once a resolution plan had been approved by NCLT under Section 31(1) of the IBC, the claims in the plan become binding on the corporate debtor as well as its employees, members and creditors, including all Central and State government authorities.
Therefore, any claim, which is not a part of such resolution plan stands extinguished once the plan is approved, the Court said.
The Court further said that no proceedings can either be initiated or continued in respect of a claim, which was not part of the resolution plan.
“Thus, once the resolution plan stands approved by the NCLT, all claims stand frozen, and no claim, which is not a part of the resolution plan, survives. In the present case, the claim of the respondents has not only been noted, but also has been accepted, in part. Recording the above, this writ petition is closed,” the order said.
Source: Barandbench
