IBC resolution plan and appellate abatement: tax claims outside the plan were extinguished, and the appeal could not continue.

Approval of a corporate debtor's resolution plan under the Insolvency and Bankruptcy Code was treated as binding, and claims not included in the plan were held to stand extinguished. Applying Rule 22 of the CESTAT Procedure Rules, 1982, the Tribunal noted that proceedings abate where a party has been adjudicated insolvent or, in the case of a company, is wound up, unless the successor-in-interest seeks continuance. As no application for continuation was filed by the successor-in-interest, the Tribunal became functus officio in relation to the appeal and the pending appeals stood abated without being proceeded with on merits.

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Issues: Whether the appeals abated upon approval of the resolution plan under the Insolvency and Bankruptcy Code and, in the absence of any application by the successor-in-interest for continuance of the proceedings, whether the Tribunal could proceed further.

Analysis: The corporate debtor had been admitted to insolvency and a resolution plan was subsequently approved by the Adjudicating Authority. The approved resolution plan was treated as binding, and the Tribunal noted that claims not forming part of the plan stood extinguished. The Tribunal also applied Rule 22 of the CESTAT Procedure Rules, 1982, which provides for abatement of proceedings where a party has been adjudicated insolvent or, in the case of a company, is wound up, unless an application for continuance is made by the successor-in-interest or other competent representative. Since no such application had been filed by the successor-in-interest, the Tribunal held that it had become functus officio in relation to the appeal.

Conclusion: The appeals abated and could not be proceeded with on merits.

Final Conclusion: The approved insolvency resolution plan terminated the surviving tax claims in these proceedings, and the pending appeals stood concluded by abatement.

Ratio Decidendi: Where a company's resolution plan is approved under the Insolvency and Bankruptcy Code and no application is made by the successor-in-interest for continuance of the appeal, the proceedings abate under the applicable appellate procedure rule, and claims outside the resolution plan do not survive.

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