Creditor's late insolvency claim after missing s.31 deadline, rejected once resolution plan approved extinguished unfiled demands Whether a creditor's demand survives after failure to lodge its claim within the time contemplated under s.31 of the IBC was the dominant issue. Applying ...
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Creditor's late insolvency claim after missing s.31 deadline, rejected once resolution plan approved extinguished unfiled demands
Whether a creditor's demand survives after failure to lodge its claim within the time contemplated under s.31 of the IBC was the dominant issue. Applying the SC's binding ratio in Ghanashyam Mishra, the Court held that once a resolution plan is approved under s.31, all claims not forming part of the plan stand extinguished and cannot be pursued thereafter. Consequently, the appellants' belated demand was held not maintainable and to no longer survive for consideration, and the appeal was disposed of.
The Supreme Court of India ruled that the appellants' claim was not made in time under Section 31 of the Insolvency and Bankruptcy Code, 2016. Referring to a previous case, the Court stated that the demand made by the appellants no longer stands for consideration. The appeals were disposed of based on this decision. Any pending applications were also disposed of.
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