Insolvency resolution plan binds municipal authorities; pre-plan property tax demand stayed where claim was not filed in CIRP.

The approved resolution plan, once sanctioned under the insolvency framework, bound all stakeholders, including municipal authorities, and the prima facie view was that statutory dues not included in the plan stood extinguished for the period before the effective date. Because the municipal authority had not filed its claim in the corporate insolvency process and the demand did not form part of the approved plan, recovery proceedings for that pre-plan period could not continue. The authority's reliance on a later Supreme Court ruling on statutory dues did not displace that prima facie position. Interim protection was therefore granted and the property tax demand was stayed to the extent it related to the petitioner's flats for the pre-effective-date period.

---

---

Issues: Whether the property tax demand raised by the municipal authority for the period prior to the effective date of the approved resolution plan could be enforced against the petitioner, and whether ad-interim protection was warranted.

Analysis: The approved resolution plan, once sanctioned under the insolvency framework, binds all stakeholders, including governmental and local authorities. On the prima facie view taken in the order, statutory dues not forming part of the resolution plan stand extinguished for the period preceding the effective date, and proceedings to recover such dues cannot be continued. The municipal authority had not lodged its claim during the corporate insolvency process, and the claim did not form part of the approved resolution plan. The distinction drawn by the authority from the later Supreme Court ruling on statutory dues was held not to displace the prima facie position, since the municipal claim had not been pursued in the insolvency process and the plan approval itself was not challenged by the authority.

Conclusion: The petitioner was held to have made out a prima facie case for interim protection, and the impugned property tax demand was stayed to the extent it related to the petitioner's flats for the period before the effective date of the resolution plan.

---