Approved resolution plan overrides inconsistent tax proceedings under insolvency law, rendering pending demand unsustainable.

An approved resolution plan under the Insolvency and Bankruptcy Code, 2016 binds the corporate debtor and stakeholders once sanctioned by the NCLT, and section 238 gives the Code overriding effect over inconsistent laws. On that basis, pending tax proceedings could not continue independently against the appellant, as the outstanding demand was rendered unsustainable in light of the approved insolvency resolution process. The appeal abated and stood disposed of.

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Issues: Whether the appeal survived in view of the approved resolution plan under the Insolvency and Bankruptcy Code, 2016, and the overriding effect of that Code on the pending tax demand.

Analysis: The resolution plan had been approved by the National Company Law Tribunal under section 31(1) of the Insolvency and Bankruptcy Code, 2016 and was binding on the corporate debtor and stakeholders. In view of section 238 of the Insolvency and Bankruptcy Code, 2016, the Code prevailed over inconsistent laws in force. On that basis, the outstanding tax proceedings could not continue independently against the appellant.

Conclusion: The appeal abated and stood disposed of.

Ratio Decidendi: Once a resolution plan is approved under the Insolvency and Bankruptcy Code, 2016, its binding effect and the overriding mandate of section 238 can render pending inconsistent proceedings unsustainable.

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