Moratorium on creditors' claims: an approved resolution plan extinguishes non provided claims and bars continuation of appeals unless plan permits it.

The note addresses whether pending tax appeals survive approval of a resolution plan under the Insolvency and Bankruptcy Code. It applies the IBC moratorium principle and the binding effect of an approved resolution plan to conclude that claims not provided for in the plan are extinguished and related proceedings cannot be initiated or continued. Continuation of pending appeals depends on an express provision in the approved plan permitting them; absent such provision the appellate forum is functus officio and appeals stand concluded by operation of the approved plan and the IBC's overriding effect.

---

---

Issues: Whether, after approval of a resolution plan by the Adjudicating Authority under Section 31(1) of the Insolvency and Bankruptcy Code, 2016, pending tax appeals against statutory dues can be continued before the Appellate Tribunal or must be treated as concluded/closed.

Analysis: The Tribunal examined the NCLT order approving resolution plans under Section 31(1) of the Insolvency and Bankruptcy Code, 2016 and applied the Supreme Court's decision in Ghanashyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Ltd. The analysis relied on the IBC provisions creating a moratorium under Section 14, the binding effect of an approved resolution plan under Section 31(1), and the overriding operation of the IBC under Section 238. The Tribunal noted that once a resolution plan is approved, claims not included in the plan stand extinguished and proceedings in respect of such claims cannot be initiated or continued. The Tribunal also considered that continuation of any pending appeal depends on whether the approved resolution plan expressly permits such continuation; absent such provision, the appellate authority becomes functus officio.

Conclusion: Against the appellant. The appeals cannot be continued and stand concluded/disposed of by operation of the approved resolution plan and the IBC.

---