TMI Blog2022 (5) TMI 1139X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon ble Supreme Court in the aforesaid judgment, wherein in view of the aforesaid judgment and Section 31 of the Code all the past dues, claims and liabilities against ESIL stands extinguished and hence no outstanding liability of ESIL/ AMNS now remains. In view thereof, the liability raised by the impugned notices which are subject matter of present writ-application stands extinguished so far as ESIL is concerned. The proceedings under the Insolvency and Bankruptcy Code 2016 has acquired finality with the aforesaid judgment passed by the Hon ble Supreme Court in COMMITTEE OF CREDITORS OF ESSAR STEEL INDIA LIMITED THROUGH AUTHORISED SIGNATORY VERSUS SATISH KUMAR GUPTA OTHERS [ 2019 (11) TMI 731 - SUPREME COURT] which clearly shows discussion in detail of the entire scheme of the provisions of the Code and vide the aforesaid quoted paragraphs it clearly shows that undecided claim of the operational creditors i.e. stand extinguished by the said scheme of rehabilitation/revival approved by the committee of the creditors which came to be approved by the Hon ble Supreme Court. Application allowed. - CIVIL APPLICATION (FOR DIRECTION) NO. 1 of 2021 With R/SPECIAL CIVIL AP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vited in terms with the provisions of the Code, and thereafter collated by the RP. 5. In accordance with the provisions of the Code, Arcelor Mittal Nippon Steel India Ltd., (AMNS) submitted resolution plan which came to be approved by the CoC on 25.10.2018 (Resolution Plan) and thereafter by the Hon ble Supreme Court on 15.11.2019 in Committee of Creditors of Essar Steel Ltd., vs. Satish Kumar Gupta Ors., reported in 2019 SCC OnLine SC 1478. Upon approval of the Resolution Plan, all the claims filed before the RP by the Creditors were settled and/or discharged by the appropriate assignment of value. The original respondents have claimed various amounts, prior to 16.12.2019 which are under challenge in the present Special Civil Application before this Court. 6. The Resolution Plan provides that claims and liabilities of ESIL whether contingent or crystallized, known or unknown, filed or not filed shall stand irrevocably and unconditionally abated, discharged, settled and extinguished in perpetuity upon approval of the Resolution Plan. In view of Section 31 of the Code, the Resolution Plan is binding to all stakeholders, including the original respondents. Further, the dues/c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was accepted (page 213 Annexure- B/3). 9.3 In view of above, Mr. Navin Pahwa, the learned Senior Advocate submitted that upon approval of the Resolution Plan in accordance with the judgment of the Hon ble Supreme Court reported in 2019 SCC OnLine 1478 all claims including any existing claim such as the claims made with respect to the water charges which are subject matter of present writapplication stands extinguished. The Resolution Plan operates in realm and disentitle anyone from agitating any claim that exists prior to the Resolution Plan. Mr. Pahwa submitted that now there is no scope for the respondent to agitate its water charges claim. 10. Mr. Ishan Joshi, the learned AGP appearing for the respondent State was unable to contradict the fact that an amount of Rs.10,65,02,083/- as referred to at page 213 of the present civil application has been duly paid by the applicant herein in terms of the Resolution Plan and the Hon ble Supreme Court order and that the said payment has been treated as full and final payment of all the outstanding claims/ dues (including any undisputed claim of ESIL) and all such claims stand full extinguished. 11. Heard Mr. Navin Pahwa, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich are subject matter of present writ-application stands extinguished so far as ESIL is concerned. By way of judgment dated 15.11.2019 in committee of creditors of ESIL vs. Satishkumar Gupta, the Hon ble Supreme Court dismissed the various appeals and finally approved the Resolution Plan of Arcelor Mittal Nippon Steel India Ltd., in the judgment as reported in 2020 (8) SCC 531. The Hon ble Supreme Court held in para-105 which reads thus :- 105. 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. In SBI v. V. Ramakrishnan [SBI v. V. Ramakrishnan, (2018)17 SCC 394 : (2019) 2 SCC (Civ) 458], this Court relying upon Section 31 of the Code has held: (SCC p. 411, para 25) 25. Section 31 of the Act was also strongly relied upon by the respondents. This section only states that once a resolution plan, as approved by the Committee of Creditors, takes effect, it shall be binding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any proceeding in relation to any claim so far as such claim relate to period prior to plan approval date. The relevant provisions of the Resolution Plan as approved by the Hon ble Supreme Court are reproduced herein which reproduced herein which reads thus :- Proceedings in relation to the Water Charges Claim stand abated: The Resolution Plan provides that all the claims along with the related proceedings shall stand irrevocably and unconditionally abated, discharged, settled and extinguished in perpetuity upon approval of the Resolution Plan. Further, no person shall be entitled to initiate any proceedings to enforce any claims or continue any proceedings in relation to any claims in so far as such claims relate to the period prior to the Plan Approval Date. Certain relevant provisions of the Resolution Plan, as approved vide the SC Judgment, are extracted hereunder for ready reference: Operational Creditors: Trade Creditors and Government Creditors - Pursuant to the approval of the Resolution Plan by the Adjudicating Authority, each, of the Trade Creditors and Government Creditors shall be deemed to be bound by the following terms :- The payments proposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erification Pending Amounts) against the Corporate Debtor till or as of the Insolvency Commencement Date, shall stand irrevocably and unconditionally settled and extinguished in perpetuity. Xxx xxx xxx e. Other than as set out in this Resolution Plan, the Resolution Applicant and the Corporate Debtor shall have no responsibility or liability in respect of any Claims (whether contingent or crystallized, known or unknown, filed or not filed) against the Corporate Debtor attributable to the period prior to the Insolvency Commencement Date, including those relating to any corporate guarantees, indemnities and all other forms of credit support provided by the Corporate Debtor till or as of the Insolvency Commencement Date shall stand irrevocably and unconditionally abated, settled and extinguished in perpetuity. xx xxx xxx 1. No Person shall be entitled to initiate any Proceedings to enforce any Claims or continue any proceedings in relation to any Claims in so far as the Claims relate to the period prior to the Plan Approval Date. xxx xx xxx 2. With respect to the matters stated in paragraph 1above, any liabilities and/ or Claims that arise till the Effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DD No.: 626895 DD Date : December 16,2019 DD Issuing Bank : State Bank of India Issued in favour of : Executive Engineer KRBC Division Payable at : Surat The Demand Draft mentioned above is enclosed with this letter. In accordance with the terms of the Resolution Plan and the Supreme Court Order, please note that the payment of the above amount shall be treated as full and final payment of all outstanding claims/dues (including any undecided claims) of ESIL to you, and all such claims shall be fully extinguished. Neither ESIL nor AMIPL shall be liable to pay any additional amounts to you. Note that any outstanding advances made by ESIL to you, if any, should not be offset against any past unpaid claims or dues, and such outstanding advances should be adjusted only against future supply of goods and services, as applicable. This letter is for your information. Handed over to Mr. Mayank Kumar Desai - DL No. GJ05-19940099755 For and on behalf of Essar Steel India Limited Name: M. Balajee Designation: Vice President Finance DD Received 17.12.2019 For, Executive Engineer K. R. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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