Insolvency resolution extinguishes unfiled customs claims, and post-plan recovery demands cannot be enforced against the corporate debtor.

A customs recovery demand for duty drawback and interest was treated as unsustainable where the claim was not included in the approved resolution plan under the Insolvency and Bankruptcy Code, 2016. Applying the settled principle that approval of a resolution plan extinguishes claims not forming part of that plan, the court held that the post-resolution demand could not be pursued against the corporate debtor. It also held that the writ petition remained maintainable despite the statutory appeal under the Customs Act because the dispute was governed by the insolvency framework and the impugned demand was outside the approved plan.

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Issues: (i) Whether the writ petition was not maintainable in view of the statutory appellate remedy under the Customs Act, 1962. (ii) Whether the demand for duty drawback and interest could survive after approval of the resolution plan in the corporate insolvency resolution process.

Issue (i): Whether the writ petition was not maintainable in view of the statutory appellate remedy under the Customs Act, 1962.

Analysis: The challenge was to an order demanding recovery of drawback and interest. Although an appeal under the customs law was available, the dispute arose in the context of a concluded insolvency resolution process and the impugned demand was not part of the approved resolution plan. The Court found that the controversy was squarely governed by the settled principles on extinguishment of claims in insolvency and therefore declined to send the petitioner to the appellate remedy.

Conclusion: The writ petition was held maintainable, and the petitioner was not relegated to the statutory appeal.

Issue (ii): Whether the demand for duty drawback and interest could survive after approval of the resolution plan in the corporate insolvency resolution process.

Analysis: The Court relied on the settled rule that once a resolution plan is approved under the Insolvency and Bankruptcy Code, 2016, all claims not forming part of the plan stand extinguished and the successful resolution applicant takes over on a fresh slate. The customs demand was not lodged during the insolvency process and was admittedly absent from the approved plan. In these circumstances, the post-resolution demand could not be fastened upon the revived corporate debtor.

Conclusion: The demand for drawback and interest was unsustainable and liable to be quashed.

Final Conclusion: The impugned customs demand was set aside, and the petitioner obtained complete relief in writ proceedings on the basis that the unresolved claim stood extinguished upon approval of the resolution plan.

Ratio Decidendi: Claims not included in an approved resolution plan are extinguished upon approval under the Insolvency and Bankruptcy Code, 2016, and cannot thereafter be pursued against the corporate debtor by way of recovery proceedings.

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