Insolvency resolution plan bars enforcement of unfiled tax demand against the corporate debtor after approval.

An outstanding income-tax demand could not be enforced against the corporate debtor after approval of the resolution plan under the Insolvency and Bankruptcy Code, because the revenue did not lodge or preserve its claim during the insolvency process and the approved plan recorded nil payment toward statutory dues. Where the creditor had knowledge of the corporate insolvency resolution proceedings but failed to establish that the demand was included in or protected by the plan, the demand could not survive against the assessee. The appeal was treated as infructuous because no effective relief remained once the demand became unenforceable.

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Issues: Whether the outstanding income-tax demand could be enforced against the assessee after approval of the resolution plan under the Insolvency and Bankruptcy Code, and whether the appeal had become infructuous.

Analysis: The assessee was undergoing corporate insolvency resolution proceedings, a moratorium had been declared, and the resolution plan approved by the National Company Law Tribunal recorded nil payment towards statutory dues because no claim had been submitted by the revenue within the resolution process. The Tribunal noted that the revenue had knowledge of the insolvency proceedings but failed to establish that its demand had been included in, or preserved under, the approved plan. In these circumstances, the demand arising from the assessment order could not be enforced against the assessee.

Conclusion: The outstanding demand was held unenforceable against the assessee, and the appeal was treated as infructuous.

Final Conclusion: The assessment-related demand survived only on paper and could not be recovered in view of the approved resolution plan, leaving no effective relief to be granted in the appeal.

Ratio Decidendi: Once a resolution plan is approved under the Insolvency and Bankruptcy Code and a statutory creditor fails to lodge or preserve its claim within the process, the creditor cannot later enforce the unprovided demand against the corporate debtor.

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