Creditor's Failure to File Claim During Insolvency Resolution Leads to Debt Extinguishment Under IBC Sections 13, 30, and 31

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....HC held that under IBC Sections 13, 30, and 31, where a creditor fails to lodge a claim with the Resolution Professional during corporate insolvency resolution process, their claim stands extinguished upon Resolution Plan approval. In this case, Respondent No.1's claim was not part of the Resolution Plan due to non-submission, consequently rendering the debt unenforceable. The court mandated release of bank guarantees to Appellant, placing an embargo on initiating or continuing any proceedings related to the extinguished claim. The Interim Application was allowed, definitively resolving the matter in favor of the Appellant.....