TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the charge created over the corporate debtor's land for recovery of farmers' FRP dues could survive after approval of the resolution plan under the insolvency framework.
Analysis: Approval of the resolution plan under Section 31 of the Insolvency and Bankruptcy Code, 2016 brought the corporate insolvency resolution process to a close and bound the stakeholders to the plan. Once the resolution applicant took over the assets and liabilities in accordance with the approved plan, no additional liability outside the plan could be fastened on it. The outstanding FRP-related claim had already been dealt with in the plan, and the charge created in the course of revenue recovery proceedings could not continue against the transferred assets. In these circumstances, the charge was liable to be treated as ineffective in law.
Conclusion: The charge over the specified properties was held non-est in law and was directed to be released, in favour of the applicant.
Ratio Decidendi: After approval of a resolution plan under Section 31 of the Insolvency and Bankruptcy Code, 2016, assets taken over by the resolution applicant cannot remain burdened with pre-existing recovery charges where the underlying claim has been dealt with in the plan and no fresh liability can be imposed outside it.
TaxTMI 
