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IN THE HIGH COURT OF ORISSA AT CUTTACK
S.K. PANIGRAHI, J.
M/s. Jsw Energy (Utkal) Limited – Petitioner
Versus
State of Odisha, Revenue And Disaster Management Department And Ors. – Respondents
W.P.(C) No.2551 of 2025
Decided On : 20-06-2025
| Table of Content |
|---|
| 1. factual background of the case (Para 3) |
| 2. arguments presented by parties (Para 4 , 5) |
| 3. court's initial observations on issues (Para 6 , 7 , 8) |
| 4. interpretation of the ibc provisions (Para 9 , 10 , 11 , 12 , 13) |
| 5. evidence and applications of law to facts (Para 14 , 15 , 16 , 17 , 18 , 19) |
| 6. judgment on the legality of demands (Para 20) |
| 7. order for refund and judgment conclusion (Para 21 , 22 , 23) |
JUDGMENT :
S.K. Panigrahi, J.
1. The Petitioner, in the present Writ Petition, is challenging the actions of the Tahasildar, Lakhanpur, District-Jharsuguda, Odisha, specifically the issuance of a Certificate of Public Demand dated 12.02.2020, PR No.1 dated 25.01.2023, Letter No. 734 dated 17.02.2023, Letter No. XXI-11/2023 No. 5855 dated 31.10.2023, PR No. 7 dated 17.11.2023; and Letter No. 4925 dated 11.09.2024.
2. The Petitioner has already deposited the demanded dues under protest and now seeks a refund of the amount deposited.
I. FACTUAL MATRIX OF THE CASE
3. The brief facts of the case are as follows:
(i) The Petitioner, formerly Ind-Bharath Energy (Utkal) Limited and now JSW Energy (Utkal) Limited, is a company incorporated under the Companies Act, 2013, with its registered office at Sahajbahal, Jharsuguda, Odisha.
(ii) In 2018, Bank of Baroda, as a financial creditor, filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against the Petitioner, which was registered as CP(IB) No. 276/7/HDB/2018 before the National Company Law Tribunal, Hyderabad Bench.Thereafter, on 29.08.2018, the NCLT admitted CP(IB) No. 276/7/HDB/2018 and initiated the Corporate Insolvency Resolution Process against the Petitioner.
(iii) A moratorium was imposed under the Insolvency and Bankruptcy Code, 2016, and an Interim Resolution Professional was appointed to take over the management and affairs of the Petitioner. The NCLT also directed that a public announcement be made under Section 13(1)(b) of the Insolvency and Bankruptcy Code, 2016.
(iv) Pursuant to the said order, on 30.08.2018, the Interim Resolution Professional issued a public announcement in Form A under Rule 6 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016, inviting all creditors of the Petitioner to submit their claims by 12.09.2018. No claim was received from the Opposite Parties either by the said date or at any time thereafter.
(v) The Interim Resolution Professional collated the claims received and was subsequently replaced by a Resolution Professional appointed by the Committee of Creditors. The Resolution Professional thereafter invited Expressions of Interestfrom eligible Resolution Applicants.
(vi) During the course of the Corporate Insolvency Resolution Process, M/s JSW Energy Limited submitted its Resolution Plan dated 03.10.2019. The Resolution Plan was approved by the Committee of Creditors with 82.70% voting share in its 15thmeeting held on 09.10.2019.
(vii) Notwithstanding the above, on 12.02.2020, the State Government initiated proceedings under the Orissa Public Demands Recovery Act, 1962 in OPDR Case No. 30/2020 against the Petitioner for recovery of arrear rent and cess for the financial years 2015–16 to 2018–19.
(viii) Thereafter, on 31.08.2020, the Resolution Professional submitted the final list of creditors of the Petitioner before the NCLT in CP(IB) No. 276/7/HDB/2018. Notably, the claims of the Opposite Parties were not included in the said list.
(ix) Subsequently, the NCLT approved the Resolution Plan submitted by the Resolution Applicant vide order dated 25.07.2022 in CP(IB) No. 276/7/HDB/2018.
(x) Thereafter, on 28.12.2022, the new Board of Directors of the Petitioner was constituted by the successful Resolution Applicant, M/s JSW Energy Limited. Accordingly, 28.12.2022 is treated as the Implementation date under the Resolution Plan.
(xi) On 31.12.2022, the Resolution Professional informed M/s JSW Energy Limited that the total resolution amount of Rs. 10,43,07,24,984.62 had been distributed among t
Once a resolution plan is approved under the Insolvency and Bankruptcy Code, all claims for periods prior to its implementation are extinguished and cannot be enforced against the corporate debtor.
The approval of a resolution plan under the IBC extinguishes all claims not included in the plan, including tax liabilities.
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.
The approval of a resolution plan under the IBC extinguishes all claims not included in the plan, including tax liabilities, ensuring a fresh start for the corporate debtor.
Approved resolution plans under the Insolvency and Bankruptcy Code extinguish all pre-CIRP claims not included, including statutory dues from tax authorities.
Approved resolution plan under IBC Section 31(1) extinguishes all pre-CIRP unsubmitted statutory dues; tax reassessment proceedings post-approval are barred by Section 238's overriding effect and cle....
Point of Law - NCLAT judgment in holding that claims that may exist apart from those decided on merits by the resolution professional and by the Adjudicating Authority/Appellate Tribunal can now be d....
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