Resolution plan approval extinguishes pre-approval claims and renders pending proceedings unsustainable under insolvency law.

Approval of a resolution plan under the Insolvency and Bankruptcy Code extinguishes claims and liabilities relating to the pre-approval period when those claims are covered by the plan. The plan is binding on the corporate debtor and all stakeholders, including governmental authorities, so pending proceedings based on such pre-approval claims become unsustainable. On that basis, the dispute relating to the earlier period no longer survived for adjudication and the appeal did not survive.

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Issues: Whether the appeal survived after approval of the resolution plan under the Insolvency and Bankruptcy Code, 2016 and the consequent extinguishment of pre-approval claims.

Analysis: The approved resolution plan treated all claims and liabilities relating to the period prior to the approval date as extinguished, and it was also binding on the corporate debtor and all stakeholders, including governmental authorities. In view of the approval of the resolution plan in the corporate insolvency resolution process, the pending dispute relating to the earlier period no longer survived for adjudication.

Conclusion: The appeal did not survive and was dismissed.

Final Conclusion: Approval of the resolution plan brought the dispute to an end by extinguishing the pre-approval liability, leaving no surviving cause for further adjudication.

Ratio Decidendi: Once a resolution plan is approved and becomes binding under the Insolvency and Bankruptcy Code, pre-approval claims covered by the plan stand extinguished and pending proceedings based on such claims become unsustainable.

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