IBC resolution plan approval extinguishes pre-existing tax claims and ends pending appeal proceedings.

Approval of a resolution plan under the Insolvency and Bankruptcy Code binds all stakeholders, including governmental creditors, and extinguishes pre-existing claims not included in the plan. Proceedings relating to such pre-approval dues cannot continue after approval, and the earlier demand order merges into the resolution plan approval order. The pending service tax appeal therefore ceased to survive for adjudication, and the Tribunal became functus officio in relation to that appeal.

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Issues: Whether the pending service tax appeal abated after approval of the resolution plan under the Insolvency and Bankruptcy Code, and whether the Tribunal became functus officio in view of the approved plan.

Analysis: The approved resolution plan under the Insolvency and Bankruptcy Code was held to bind all stakeholders, including governmental creditors, and claims not forming part of the plan stood extinguished upon approval. The Tribunal relied on the CBIC standard operating procedure for insolvency cases and the settled position that proceedings concerning pre-approval dues cannot continue once the resolution plan is approved. The impugned order was treated as merged in the order approving the resolution plan, with the result that the pending appeal no longer survived for adjudication.

Conclusion: The appeal had abated from the date of approval of the resolution plan, and the Tribunal had become functus officio in relation to the appeal.

Final Conclusion: The pending tax dispute ceased to survive after approval of the corporate resolution plan, and the matter was disposed of on that basis without examination of the demand on merits.

Ratio Decidendi: Once a resolution plan is duly approved under the Insolvency and Bankruptcy Code, pre-existing claims not included in the plan stand extinguished and proceedings in respect of such claims cannot continue.

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