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SONIA GOKANI, HEMANT M. PRACHCHHAK
Daxin Gujarat Vij Company Ltd Through Executive Engineer – Appellant
Versus
Essar Steel India Ltd – Respondent
JUDGMENT :
SONIA GOKANI, J.
1. Aggrieved by the judgment and order dated 28.09.2021 passed by the learned 2nd Additional Senior Civil Judge, Surat, where the learned Judge dismissed the Commercial Civil Suit No.4 of 2020 (Old Special Civil Suit No.373/2016) filed by the appellant-original plaintiff as having become infructuous, the appellant chooses to prefer the present appeal in the following factual background.
1.1 The appellant is a company registered under the provisions of the Companies Act, 1956 undertaking the business of supply and distribution of electricity in the certain region in the State of Gujarat.
1.2 The Essar Steel India Limited now known as Arcelor Mittal Nippon Steel India Limited (‘the Arcelor Mittal’ hereinafter) sets up a plant for manufacture of hot rolled steel coil at Hazira in the year 1991. To cater to the needs of Essar Steel India Limited (‘the Essar Steel’ hereinafter) and other group of Companies, the appellant had set up a power plant of 515 megawatt at Hazira in the year 1995. Out of 515 megawatt of electricity generated/produced by the Essar Powe
Once a resolution plan is approved under the IBC, all claims not part of the plan are extinguished, and the tribunal lacks jurisdiction to adjudicate on such claims.
Approved resolution plans under the Insolvency Code extinguish claims not included, barring enforcement actions for pre-existing statutory dues.
The main legal principle established in the judgment is the extinguishment of pre-existing and undecided claims upon approval of the Resolution Plan under Section 31 of the Insolvency and Bankruptcy ....
Approved resolution plans under the Insolvency and Bankruptcy Code extinguish all pre-CIRP claims not included, including statutory dues from tax authorities.
The approved Resolution Plan under the Insolvency and Bankruptcy Code binds all creditors, extinguishing claims not included, ensuring no surprise liabilities arise post-approval.
Claims against a successful resolution applicant for dues not presented during CIRP are extinguished after approval of the resolution plan, confirming the clean slate principle.
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