In Brief
This landmark batch of cases addresses the binding nature of resolution plans approved under India's Insolvency and Bankruptcy Code. The Supreme Court held that once a resolution plan is approved by the Adjudicating Authority (NCLT), all claims not included in the plan—including statutory dues owed to governments and authorities—stand extinguished. The Court clarified that the 2019 amendment to Section 31, making this explicit for government dues, is declaratory and therefore applies retrospectively. All creditors, including Central and State governments, tax authorities, and local bodies, are bound by the approved plan. The Court affirmed that successful resolution applicants start with a clean slate and cannot face surprise claims post-approval. The decision emphasizes that the dominant purpose of the Code is corporate revival, which requires finality and certainty in approved resolution plans.
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