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2023 (12) TMI 577 - HC - CustomsShort payment of Customs Duty - Approval of Resolution Plan - extinguishment of claims once resolution plan approved u/s 31 of IBC - overriding effect of IBC over Customs Act - HELD THAT:- Undisputedly, the Supreme Court in ABG Shipyard Liquidator vs. Central Board of Indirect Taxes & Customs [2022 (8) TMI 1161 - SUPREME COURT] has unequivocally held that the provisions of the IBC would override and have precedence over the Act. Insofar as the extinguishment of claims is concerned, the said issue too is no longer res integra and stands authoritatively answered by the Supreme Court in Essar Steel India Ltd. Committee of Creditors vs. Satish Kumar Gupta [2019 (11) TMI 731 - SUPREME COURT] and Ghanashyam Mishra & Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Pvt. Ltd. [2021 (4) TMI 613 - SUPREME COURT], where it was held that Section 31(1) of the Code makes it clear that once a resolution plan is approved by the Committee of Creditors it shall be binding on all stakeholders, including guarantors. This is for the reason that this provision ensures that the successful resolution applicant starts running the business of the corporate debtor on a fresh slate as it were. The impugned order cannot be sustained - petition allowed.
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