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IN THE HIGH COURT OF JUDICATURE AT ALLAHABAD
AJIT KUMAR, SWARUPAMA CHATURVEDI
South East U.P. Power Transmission Company Limited – Appellant
Versus
Prescribed Authority – Respondent
JUDGMENT :
SWARUPAMA CHATURVEDI, J.
1. Both writ petitions, filed under Article 226 of the Constitution of India, arise out of a similar grievance, wherein the respective petitioners challenge the demand notices issued to them towards electricity dues pertaining to the period prior to the commencement of the Corporate Insolvency Resolution Process (hereinafter referred to as “CIRP”) of the concerned companies, which are resolved long ago after following due procedure prescribed under Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as “IBC”). In Writ C No.19391 of 2023, the petitioner seeks issuance of a writ, order or direction in the nature of certiorari for quashing the impugned demand notices, whereas in Writ C No.17846 of 2025, the petitioner, prays for issuance of a writ of certiorari to quash the impugned demand to the extent it pertains to the period prior to the approval of the resolution plan, and a writ of mandamus restraining the respondents from taking any coercive action pursuant to the said notices and subsequent actions.
2. Since the reliefs sought in both the petitions are substantially similar, and the matters arise out of a similar set of facts involvin
Pre-CIRP debts are extinguished upon approval of the Resolution Plan under the IBC, and the pendency of an appeal does not automatically stay the implementation of the approved Resolution Plan.
The 'Clean Slate' theory established by the Supreme Court in insolvency cases extinguishes all claims not included in the Resolution Plan, impacting the rights of creditors and other parties involved....
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 approved Resolution Plan under the Insolvency and Bankruptcy Code binds all creditors, extinguishing claims not included, ensuring no surprise liabilities arise post-approval.
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, ensuring a fresh start for the corporate debtor.
The approval of a resolution plan under the IBC extinguishes all claims not included in the plan, including tax liabilities.
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