Fresh slate principle under insolvency law extinguishes unprovided claims in an approved resolution plan, while refund relief was refused.

Claims not dealt with in an approved resolution plan were treated as extinguished on approval under the Insolvency and Bankruptcy Code, applying the fresh slate principle and barring separate enforcement against the corporate debtor. The tribunal held that the tax demand covered by the plan stood extinguished in favour of the applicant. The separate claim for refund of assessed amounts with interest for earlier assessment years was not granted and was rejected. The application therefore succeeded only to the extent that the covered demand ceased to survive, while monetary refund relief was declined.

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Issues: (i) Whether tax demands and other claims not dealt with in the approved resolution plan stood extinguished after approval of the resolution plan. (ii) Whether the applicant was entitled to refund of the assessed amount with interest for earlier assessment years.

Issue (i): Whether tax demands and other claims not dealt with in the approved resolution plan stood extinguished after approval of the resolution plan.

Analysis: The approved resolution plan was treated as binding on all stakeholders. Reliance was placed on the settled principle that once a resolution plan is approved under the Insolvency and Bankruptcy Code, claims not forming part of the plan stand frozen and extinguished, and no separate proceeding can continue in respect of such claims. The decision applied the fresh slate principle flowing from the approved resolution plan.

Conclusion: The demand of the respondents stood extinguished and the issue was decided in favour of the applicant.

Issue (ii): Whether the applicant was entitled to refund of the assessed amount with interest for earlier assessment years.

Analysis: The prayer for refund was separately considered and was not accepted. The order did not grant the monetary refund claim or the associated interest relief.

Conclusion: The refund claim was rejected and the issue was decided against the applicant.

Final Conclusion: The application succeeded only to the extent of extinguishment of the demand covered by the approved resolution plan, while the refund claim was declined.

Ratio Decidendi: Once a resolution plan is approved under the Insolvency and Bankruptcy Code, claims not provided for in the plan cease to survive against the corporate debtor and are not enforceable independently.

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