Approved resolution plans extinguish excluded claims; Section 60(5) cannot be used to enforce a foreign judgment after CIRP completion.

Section 60(5) of the Insolvency and Bankruptcy Code cannot be used to enforce a foreign judgment or obtain monetary directions against a corporate debtor after the corporate insolvency resolution process has concluded and the resolution plan has been implemented. Claims not included in the approved resolution plan stand extinguished on approval, and they cannot later be pursued against the corporate debtor or its new management on a fresh-slate basis. The NCLAT noted that the reliefs sought were in substance enforcement of quantified sums, outside the permissible insolvency context, and held that excluded claims could not be revived after completion of the resolution process.

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Issues: (i) Whether an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 could be used to seek monetary directions against the corporate debtor on the basis of a foreign judgment after completion and implementation of the resolution plan. (ii) Whether claims not forming part of the approved resolution plan survive after approval of the plan and can be pursued against the corporate debtor or its new management.

Issue (i): Whether an application under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 could be used to seek monetary directions against the corporate debtor on the basis of a foreign judgment after completion and implementation of the resolution plan.

Analysis: Section 60(5) empowers the adjudicating forum to decide questions arising out of insolvency resolution or liquidation proceedings, but it is not a mechanism for execution of a foreign judgment. The proceeding was founded on reliefs for payment of quantified sums, which in substance amounted to enforcement of the foreign decree. The corporate insolvency process had already concluded and the resolution plan had been implemented, so the application did not arise in an ongoing insolvency resolution context.

Conclusion: The application was not maintainable under Section 60(5) for the reliefs sought, and the challenge failed on this ground.

Issue (ii): Whether claims not forming part of the approved resolution plan survive after approval of the plan and can be pursued against the corporate debtor or its new management.

Analysis: Once the resolution plan is approved, claims that are not part of the plan stand extinguished, and no person can continue or initiate proceedings in respect of such claims. The successful resolution applicant takes over on a fresh slate, and the corporate debtor cannot be burdened later with undecided or excluded claims. On the facts, the asserted dues were not established as part of the approved plan and could not be fastened on the corporate debtor after implementation of the plan.

Conclusion: The claims were extinguished upon approval of the resolution plan and could not be pursued against the corporate debtor or its subsequent management.

Final Conclusion: The appeal failed because the requested monetary reliefs were outside the permissible scope of the insolvency proceeding and the asserted claims had already ceased to survive after approval and implementation of the resolution plan.

Ratio Decidendi: A claim not included in an approved resolution plan stands extinguished, and Section 60(5) of the Insolvency and Bankruptcy Code, 2016 cannot be invoked to execute a foreign judgment or revive such excluded claims after completion of the corporate insolvency resolution process.

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