In Brief
The Supreme Court held that once a corporate insolvency resolution plan is approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, all claims not included in the plan stand extinguished. In this case, income tax demands issued for assessment years 2012-13 and 2013-14 after the approval of the resolution plan for Tehri Iron and Steel Casting Ltd. were not part of the approved plan and were therefore invalid. The Court set aside the NCLT and NCLAT orders that had dismissed the challenge to these demands, emphasizing that a resolution applicant must take over business on a clean slate without facing belated claims.
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