Approved resolution plan extinguishes unprovided claims; refund disputes over electricity supply dues fall within insolvency jurisdiction.

Disputes arising from implementation of an approved resolution plan, including demands linked to restoration of electricity supply and recovery or refund of amounts, fall within insolvency jurisdiction under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016. On approval of the resolution plan, claims not included in the plan stand extinguished, so pre-CIRP dues and delayed payment surcharge cannot be recovered outside the plan. However, refund relief must be limited to the component shown to relate to pre-CIRP dues; amounts attributable to the CIRP period are not refundable on the record considered.

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Issues: (i) Whether the Adjudicating Authority had jurisdiction under the insolvency framework to entertain the application concerning recovery and refund of amounts demanded in connection with implementation of the approved resolution plan and restoration of electricity supply; (ii) Whether pre-CIRP dues and delayed payment surcharge stood extinguished on approval of the resolution plan, and whether refund could be confined only to such pre-CIRP demands.

Issue (i): Whether the Adjudicating Authority had jurisdiction under the insolvency framework to entertain the application concerning recovery and refund of amounts demanded in connection with implementation of the approved resolution plan and restoration of electricity supply.

Analysis: The dispute arose directly from implementation of the approved resolution plan and the consequential demand for restoration of supply. Questions relating to the effect of the approved plan, the demands raised for resumption of supply, and the parties' correspondence after approval of the plan were matters arising out of or in relation to the insolvency resolution process. Such matters fall within the wide jurisdictional sweep of Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016.

Conclusion: The Adjudicating Authority had jurisdiction to entertain the application.

Issue (ii): Whether pre-CIRP dues and delayed payment surcharge stood extinguished on approval of the resolution plan, and whether refund could be confined only to such pre-CIRP demands.

Analysis: Once the resolution plan was approved, claims not forming part of the plan stood extinguished. The electricity supplier had filed its claim in the insolvency process and received the amount allotted under the plan. Consequently, it could not insist on recovery of pre-CIRP dues or retain amounts recovered towards such dues. At the same time, the record did not establish that every component of the demanded amount related to the pre-CIRP period. The refund direction therefore had to be limited to amounts referable to pre-CIRP dues, while amounts relating to the CIRP period were not refundable on the present record.

Conclusion: Pre-CIRP dues were not recoverable, but refund was confined only to the pre-CIRP component and did not extend to CIRP-period dues.

Final Conclusion: The appeal resulted in a limited modification of the impugned order by confining refund to pre-CIRP dues alone, while affirming that claims outside the approved plan stood extinguished and could not be recovered.

Ratio Decidendi: Upon approval of a resolution plan, claims not included in the plan stand extinguished, and disputes concerning enforcement of that effect fall within the insolvency jurisdiction of the Adjudicating Authority under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016.

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