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2021 (6) TMI 1160 - HC - Insolvency and BankruptcyFiling of fresh claims after Resolution Plan is approved - demand of outstanding water tax dues - HELD THAT:- The settled legal position is that once a resolution plan is approved by the CoC and meets the requirements of Section 30 (2) of the IBC, it is binding on all creditors, guarantors, employees and other stake holders. From the point of view of the company that is undergoing the reconstruction, it cannot after the resolution plan is approved, be faced with fresh claims pertaining to the very period for which the plan has been approved. This has been explained by the Supreme Court in The Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta [2019 (11) TMI 731 - SUPREME COURT] where it was held that A successful resolution Applicant cannot suddenly be faced with "undecided" claims after the resolution plan submitted by him has been accepted as this would amount to a hydra head popping up which would throw into uncertainty amounts payable by a prospective resolution Applicant who successfully take over the business of the corporate debtor. In the present case, once the resolution plan was approved by the NCLT, and affirmed by the NCLAT in appeal, it was not open to Opposite Party No.2, which in fact participated in the resolution plan by submitting a claim, to again raise a demand for the very period covered by the resolution plan. In other words, no claim for the period between December 2009 up to 7th November 2017, the date of approval of the resolution plan could have been raised by Opposite Party No.2. Such demands to the extent they cover the period up to 7th November, 2017 are plainly unsustainable in law. Opposite Parties 1 to 3 will revise their demand by limiting it to the period from 7th November, 2017 and in the first instance issue a show cause notice (SCN) to the Petitioner giving it a reasonably sufficient time to reply to it - Thereafter the Opposite Parties 1 to 3 will proceed to pass appropriate orders to finalise the demand after verifying the claim of the Petitioner that it has been paying the water tax dues from January, 2019 onwards - petition disposed off.
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