Tribunal enforces Resolution Plan compliance, rejects late claims. Monitoring Committee to oversee implementation.

The Tribunal ruled that the Respondent's claims, not submitted during the CIRP, would not be entertained. The company could operate its bank account without hindrance, and the Resolution Applicant must adhere to the approved Resolution Plan and report compliance. The Monitoring Committee was tasked with monitoring the Plan's implementation. IA No.20 of 2020 was disposed of accordingly.

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Issues Involved:
1. Extinguishment of tax demands prior to the effective date of the Resolution Plan.
2. Validity and enforceability of claims not submitted during the CIRP period.
3. Implementation and compliance with the approved Resolution Plan.

Issue-Wise Detailed Analysis:

1. Extinguishment of Tax Demands Prior to the Effective Date of the Resolution Plan:
The Corporate Debtor (Applicant) filed IA No.20 of 2020 under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016, seeking the extinguishment of demands made by the Respondent for Central Sales Tax and Value Added Tax amounting to Rs. 17,96,20,631/- and Rs. 3,22,59,067/- respectively, and any other demand prior to 20th September 2018. The Resolution Plan approved on 20.09.2018 clearly stated that any claims or demands prior to the effective date would stand extinguished. Despite the Applicant's communication to the Respondent regarding the approval of the Resolution Plan and the settlement of claims, the Respondent did not respond or file any claims during the CIRP period.

2. Validity and Enforceability of Claims Not Submitted During the CIRP Period:
The Respondent failed to file its claims with the Interim Resolution Professional (IRP) or the Resolution Professional (RP) during the CIRP. The approved Resolution Plan explicitly mentioned that any liabilities, including those to Operational Creditors and other creditors, relating to the period before the effective date, would be deemed settled and extinguished. The Supreme Court's ruling in the case of Committee of Creditors of Essar Steel India Ltd. Vs. Satish Kumar Gupta & Ors. reinforced that all claims should be submitted and decided during the CIRP to avoid uncertainties for the successful Resolution Applicant.

3. Implementation and Compliance with the Approved Resolution Plan:
The Tribunal directed that since the Respondent did not file their claims during the CIRP, any future claims would not be entertained by the Resolution Applicant or the Corporate Debtor. The Tribunal ordered that the company could operate its bank account without any obstructions from the Respondent. The Resolution Applicant was directed to strictly implement the approved Resolution Plan without any violations and to file a compliance report detailing the payment of statutory dues. Additionally, the Monitoring and Supervising Committee was instructed to submit a status report on the implementation of the Resolution Plan.

Order:
The Tribunal concluded that the Respondent's claims, if filed now or in the future, would not be entertained due to their failure to file during the CIRP period. The company was allowed to operate its bank account without obstructions, and the Resolution Applicant was directed to implement the Resolution Plan and file a compliance report. The Monitoring and Supervising Committee was also directed to submit a status report on the implementation of the Resolution Plan. Accordingly, IA No.20 of 2020 was disposed of with the above observations and directions.

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