Resolution Plan Under IBC Section 31 Freezes All Claims, Creates Clean Slate for Corporate Debtor with Binding Effect on Stakeholders

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....HC held that once a resolution plan is approved under IBC Section 31, all claims are frozen and binding on stakeholders. The claims by operational creditors were addressed in the amended resolution plan, effectively creating a clean slate for the corporate debtor. Applying CPC Order XII Rule 6, the court found unambiguous admissions warranting immediate judgment. The suit was decreed, ordering the defendant to pay Rs. 19,55,00,000 with 24% per annum interest, based on the principle of speedy resolution and extinguishment of pre-resolution claims.....