Approved resolution plan extinguishes pre-effective-date provident fund claims not included in the plan.

An approved resolution plan extinguished the provident fund demand for the pre-effective-date period because the plan expressly discharged all prior claims and demands not admitted and included in it. The Tribunal applied the insolvency principle that once a resolution plan is approved, claims not submitted or not forming part of the plan cannot later be enforced against the corporate debtor, as that would undermine the certainty of the insolvency process. The pre-effective-date demand was therefore set aside, while current statutory dues arising after the effective date remained payable in time.

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Issues: Whether the provident fund demand relating to the period prior to the effective date stood extinguished under the approved resolution plan and could still be recovered after approval of the plan.

Analysis: The approved resolution plan expressly provided that all claims and demands relating to the period prior to the effective date, other than those admitted and forming part of the plan, would stand fully discharged and settled. The Tribunal relied on the principle that once a resolution plan is approved, undecided or unsubmitted claims cannot later be enforced against the corporate debtor, as that would defeat the certainty intended by the insolvency process. The demand raised for the pre-effective-date period was therefore inconsistent with the binding terms of the approved plan. The Tribunal also noted that statutory current dues arising after the effective date were required to be paid in time.

Conclusion: The pre-20 September 2018 demand was held to be extinguished in terms of the approved resolution plan and could not be enforced against the corporate debtor.

Final Conclusion: The application succeeded to the extent of setting aside the pre-effective-date provident fund demand, while leaving the obligation to pay current post-effective-date statutory dues intact.

Ratio Decidendi: Once a resolution plan is approved, claims relating to the period prior to the effective date that are not included in the plan stand extinguished and cannot be recovered subsequently from the corporate debtor.

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