In Brief
This landmark batch of decisions establishes that once a resolution plan is approved by a court under India's Insolvency Code, it is legally binding on all stakeholders—including government tax authorities—and extinguishes all claims not included in the plan. The Court rejected arguments from government authorities and unsuccessful bidders that they could continue recovering dues or invoking guarantees after a plan's approval. The judgment clarifies that a 2019 amendment making this binding effect explicit is merely declaratory and applies retrospectively. The Court reaffirmed that commercial decisions of creditor committees cannot be judicially reviewed except for procedural compliance, and that permitting surprise claims post-approval would undermine the Code's core purpose: reviving troubled companies within strict timelines. Unsuccessful bidders cannot take inconsistent positions by proposing claim extinguishment in their own plans and then reviving those claims after losing.", <parameter name="cited_cases">[ { "raw_citation": "(2004) 3 SCC 90", "case_name": "K. Shashidhar v. Indian Overseas Bank and Others", "cited_year": "2004", "paragraph": "31", "treatment": "relied", "treatment_by": "this_court", "treatment_quote": "This Court in K. Shashidhar has observed that the commercial wisdom of the Committee of Creditors has been given paramount status without any judicial intervention for ensuring completion of the stated processes within the timelines prescribed by the I&B Code." }, { "raw_citation": "(2020) 8 SCC 531", "case_name": "Committee of Creditors of Essar Steel India Limited through Authorized Signatory v. Satish Kumar Gupta and Others", "cited_year": "2020", "paragraph": "31, 55, 62, 144, 152, 162", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Maharashtra Seamless Limited v. Padmanabhan Venkatesh and others", "cited_year": "2021", "paragraph": "31, 146, 154, 155", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "2020 SCC OnLine SC ___", "case_name": "Karad Urban Cooperative Bank Ltd. v. Swapnil Bhingardevay & Ors.", "cited_year": "2020", "paragraph": "31, 56", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Kalpraj Dharamshi and Another v. Kotak Investment Advisors Limited and Another", "cited_year": "2021", "paragraph": "31, 55, 129", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "AIR 1955 SC 661", "case_name": "Bengal Immunity Co. Ltd. v. State of Bihar", "cited_year": "1955", "paragraph": "81", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(1976) 1 SCC 254", "case_name": "Loka Shikshana Trust v. CIT", "cited_year": "1976", "paragraph": "74", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(1976) 1 SCC 324", "case_name": "Indian Chamber of Commerce v. Commissioner of Income Tax", "cited_year": "1976", "paragraph": "74", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(1980) 2 SCC 31", "case_name": "Additional Commissioner of Income Tax v. Surat Art Silk Cloth Manufacturers' Association", "cited_year": "1980", "paragraph": "74", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2002 SCC OnLine SC ___", "case_name": "Zile Singh v. State of Haryana and others", "cited_year": "2002", "paragraph": "79, 81, 82, 83", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "(2001) 8 SCC 24", "case_name": "Shyam Sunder v. Ram Kumar", "cited_year": "2001", "paragraph": "81", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2003) 5 SCC 23", "case_name": "National Agricultural Coop. Marketing Federation of India Ltd. v. Union of India", "cited_year": "2003", "paragraph": "81", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "1928 SCC OnLine Mad 236", "case_name": "Chokalinga Chettiar v. Dandayuthapani Chettiar", "cited_year": "1928", "paragraph": "84", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "AIR 1969 SC 297", "case_name": "Bank of Bihar Ltd. v. Damodar Prasad", "cited_year": "1969", "paragraph": "84", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "1989 SCC OnLine P&H 1069", "case_name": "National Project Construction Corpn. Ltd. v. Sadhu and Co.", "cited_year": "1989", "paragraph": "84", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2018) 17 SCC 394", "case_name": "State Bank of India v. V. Ramakrishnan and Another", "cited_year": "2018", "paragraph": "35, 84, 85", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "2019 SCC OnLine NCLAT 388", "case_name": "Standard Chartered Bank v. Satish Kumar Gupta", "cited_year": "2019", "paragraph": "62", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2019 SCC OnLine NCLAT 384", "case_name": "SBI v. V. Ramakrishnan", "cited_year": "2019", "paragraph": "84", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2019) 2 All LJ 769", "case_name": "Sanjeev Shriya v. SBI", "cited_year": "2019", "paragraph": "84", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "B.K. Educational Services Private Limited v. Parag Gupta and Associates", "cited_year": "2021", "paragraph": "35, 85, 86", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "2019 SCC OnLine NCLAT 388", "case_name": "Committee of Creditors of Essar Steel India Limited through Authorized Signatory v. Satish Kumar Gupta", "cited_year": "2019", "paragraph": "62", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2020 SCC OnLine SC ___", "case_name": "ArcelorMittal India Private Limited v. Satish Kumar Gupta", "cited_year": "2020", "paragraph": "55", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2000) 5 SCC 694", "case_name": "Dena Bank v. Bhikhabhai Prabhudas Parekh and Co. & Ors.", "cited_year": "2000", "paragraph": "138", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Inventive Industries Ltd. v. ICICI Bank & Anr.", "cited_year": "2021", "paragraph": "50, 51, 52, 53, 54", "treatment": "relied", "treatment_by": "this_court" }, { "raw_citation": "2019 SCC OnLine NCLAT 388", "case_name": "Export Import Bank of India v. Resolution Professional JEKPL Private Limited", "cited_year": "2019", "paragraph": "115, 117", "treatment": "distinguished", "treatment_by": "this_court", "treatment_quote": "We find, that the said case, on facts, would not be applicable to the case at hand. No doubt, that the appeal filed against the judgment and order of NCLAT dated 14.8.2018 has been dismissed by this Court on 23.1.2019. However, it is a settled law, that dismissal of a Special Leave Petition/Appeal does not amount to affirmation of the view taken in the judgment impugned in the Special Leave Petition/Appeal." }, { "raw_citation": "1976 LR 1", "case_name": "Loka Shikshana Trust v. CIT", "cited_year": "1976", "paragraph": "74", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "1976 SCC (Tax) 14", "case_name": "Loka Shikshana Trust v. CIT", "cited_year": "1976", "paragraph": "74", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "101 ITR 234", "case_name": "Loka Shikshana Trust v. CIT", "cited_year": "1976", "paragraph": "74", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "(2000) 5 SCC 531", "case_name": "Committee of Creditors of Essar Steel India Limited v. Satish Kumar Gupta", "cited_year": "2000", "paragraph": "62", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "101 ITR 796", "case_name": "Indian Chamber of Commerce v. Commissioner of Income Tax", "cited_year": "1976", "paragraph": "74", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "1976 Tax LR 210", "case_name": "Indian Chamber of Commerce v. Commissioner of Income Tax", "cited_year": "1976", "paragraph": "74", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "121 ITR 1", "case_name": "Brij Mohan Das Laxman Das v. Commissioner of Income-tax", "cited_year": "1976", "paragraph": "78", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "1980 SCC (Tax) 170", "case_name": "Brij Mohan Das Laxman Das v. Commissioner of Income-tax", "cited_year": "1980", "paragraph": "78", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "K.P. Varghese v. Income Tax Officer, Ernakulam and Another", "cited_year": "2021", "paragraph": "74", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Union of India and others v. Martin Lottery Agencies Ltd.", "cited_year": "2021", "paragraph": "75", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Commissioner of Income-Tax, Bombay v. Podar Cement Pvt. Ltd.", "cited_year": "2021", "paragraph": "78", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Babu Ram Prakash Chandra Maheshwari v. Antarim Zilla Parishad Muzaffar Nagar", "cited_year": "2021", "paragraph": "129", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Whirlpool Corporation v. Registrar of Trade Marks, Mumbai & Ors.", "cited_year": "2021", "paragraph": "129", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Nivedita Sharma v. Cellular Operators Association of India & Ors.", "cited_year": "2021", "paragraph": "129", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Embassy Property Developments Pvt. Ltd. v. State of Karnataka and Others", "cited_year": "2021", "paragraph": "129", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Banarasi and Another v. Ram Phal", "cited_year": "2021", "paragraph": "33", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Pr. Director General of Income Tax (Admn. & TPS) v. M/s. Spartek Ceramics India Ltd. & Anr.", "cited_year": "2021", "paragraph": "109", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Commissioner of Income Tax I, Ahmedabad v. Gold Coin Health Food Private Limited", "cited_year": "2021", "paragraph": "83", "treatment": "referred", "treatment_by": "this_court" }, { "raw_citation": "2021 SCC OnLine SC ___", "case_name": "Akshay Jhunjhunwala & Anr. v. Union of India through the Ministry of Corporate Affairs & Ors.", "cited_year": "2021", "paragraph": "93", "treatment": "referred", "treatment_by": "this_court" } ]
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