Resolution plan approval extinguishes excluded claims and bars continuation of proceedings under the Insolvency and Bankruptcy Code.

Approval of a resolution plan under Section 31(1) of the Insolvency and Bankruptcy Code makes the claims covered by the plan binding, while claims not included in the plan stand extinguished. Proceedings cannot be initiated or continued in respect of such -of-plan claims once the plan is duly approved. On that basis, the appeal was held not to survive and was closed accordingly.

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Issues: Whether the appeal could survive after approval of the resolution plan by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016.

Analysis: Once a resolution plan is duly approved under Section 31(1) of the Insolvency and Bankruptcy Code, 2016, the claims covered by the plan become binding and all claims not forming part of the plan stand extinguished. In such a situation, no person can initiate or continue proceedings in respect of a claim that is outside the resolution plan.

Conclusion: The appeal could not be continued and was liable to be closed.

Final Conclusion: The proceedings were held to have ceased to survive after approval of the resolution plan, and the appeal was disposed of accordingly.

Ratio Decidendi: Approval of a resolution plan under Section 31(1) extinguishes pre-existing claims not included in the plan and bars continuation of proceedings in respect of such claims.

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