TMI Blog2021 (9) TMI 437X X X X Extracts X X X X X X X X Extracts X X X X ..... HROUGH THE DIRECTOR ORS. [ 2021 (4) TMI 613 - SUPREME COURT ] has held that once a resolution plan is duly approved by the Adjudicating Authority under subsection (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan. As it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Plan approved, from the above Sales Tax dues hardly an amount of ₹ 14,50,000 has been allotted to Operational Creditors - Government Authorities which comes to hardly 1% of the dues for which the Appellant had filed claim with the Resolution Professional. The Learned Counsel for the Resolution Professional, Shri Malhar Zatakia, submits that the Corporate Insolvency Resolution Process (CIRP) was duly conducted and the Resolution Plan has been approved in which the Appellant - Operational Creditor has received dues which Committee of Creditors (CoC) approved in its commercial wisdom. 2. Learned Counsel for the Appellant is submitting that its quite surprising that the Appellant - Operational Creditor has been given a 99% haircut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Refer point 5 and 7 of Resolution Plan Operational creditors, excluding employees and workmen (this include various statutory authorities like Income 14.50 Lacs 1. Infusion through Leadadroit Services Private Limited through SPV in the form of subsidiary company by way of release of its liquid funds/ investments against which corporate debtor will issue Equity Refer point 5 and 7 of Resolution Plan Tax, VAT and Service Tax) Shares of the Corporate Debtor. Treatment of Financial Creditors Upfront cash payment to financial creditors (within 90 days) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed as under: 95. In the result, we answer the questions framed by us as under: (i) That once a resolution plan is duly approved by the Adjudicating Authority under subsection (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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