2026 (4) TMI 516

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....sed. Ld. Counsel produced the said order dated 09.06.2020 of the NCLT as well as copies of Final Order Nos.40633 - 40642/2025 dated 20.06.2025 and Final Order No.40342/2024 dated 21.03.2024 passed by this Tribunal earlier, in similar circumstances. 2. Ld. Authorised Representative, Ms. Anandalakshmi Ganeshram agreed with the submission that NCLT has approved the Resolution Plan and expressed no objections to the request made. 3. We have heard both sides and perused the order of NCLT dated 09.06.2020. The order reflects that three Interlocutory Applications (IAs)-IA No. 1864/2019 in CP (IB) No.298/2018 (in the matter of Aircel Limited), IA No.1863/2019 in CP (IB) No.302/2018 (in the matter of Dishnet Wireless Limited) and IA No. 1865/2019 in CP (IB) No.300/2018 (in the matter of Aircel Cellular Limited) have been filed by Mr Vijaykumar V. Iyer, common Resolution Professional of Aircel Limited, Dishnet Wireless Limited and Aircel Cellular Limited (collectively referred to as 'Corporate Applicants'), under section 30(6) read with section 31(1) of the Insolvency & Bankruptcy Code (IBC), seeking approval of the Adjudicating Authority for the Resolution Plans submitted by U....

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....y State Government or any local authority would come within the ambit of 'operational debt'. The Central Government, any State Government or any local authority to whom an operational debt is owed would come within the ambit of 'operational creditor' as defined under sub-section (20) of Section 5 of the I&B Code. Consequently, a person to whom a debt is owed would be covered by the definition of 'creditor' as defined under sub-section (10) of Section 3 of the I&B Code. As such, even without the 2019 amendment, the Central Government, any State Government or any local authority to whom a debt is owed, including the statutory dues, would be covered by the term 'creditor' and in any case, by the term 'other stakeholders' as provided in sub-section (1) of Section 31 of the I&B Code. 92. The Division Bench of the Rajasthan High Court in D.B. Civil Writ Petition No.9480 of 2019 in the case of Ultra Tech Nathdwara Cement Ltd. vs. Union of India & Ors., by judgment and order dated 7.4.2020 has taken a view, that the demand notices, issued by the Central Goods and Service Tax Department, for a period prior to the date on which NCLT has granted its approval to the resolution plan, a....

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....oresaid Judgement that once the Resolution Plan is approved by the Adjudicating Authority under Section 31 (1) of Insolvency and Bankruptcy Code 2016 (IBC), then "no person will be entitled to initiate or continue any proceedings in respect to a claim which is not part of the resolution plan''. We make it clear that neither side has informed us as to whether or not the statutory dues owed to the Central Government, under contest in these appeals before us, are part of the said resolution plan or not. Be that as it may, as the conclusions of the Apex Court has also elucidated that all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the Adjudicating Authority grants their approval under Section 31 could be continued, to our mind, it is clear that, in any event, the present proceedings in these appeals cannot be continued before us. Ordered accordingly. The appeals stand disposed of in these terms. (Order dictated and pronounced)   Sd/- (AJAYAN T.V.) Membe....

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..... [See: Supreme Court judgment in M/S. INNOVENTIVE INDUSTRIES LTD. Vs ICICI BANK & ANR. - CIVIL APPEAL No's. 8337-8338 OF 2017, Dated: 31.08.2017] 10. During CIRP, the Committee of Creditors (CoC) may approve a resolution plan aimed at reviving the corporate debtor as a going concern, instead of opting to liquidate the company or handing it over to another entity. It is left to the commercial wisdom of the majority of creditors of the Committee, to determine, through negotiation with the prospective resolution applicant, as to how and in what manner the corporate resolution process is to take place. [See: K. Sashidhar Vs Indian Overseas Bank & Ors - CIVIL APPEAL NO.10673 OF 2018, Dated: 05.02.2019]. Such a plan may restructure debts or otherwise settle liabilities, including statutory dues or permit the continuation of appeal if beneficial to the resolution scheme. For example if a refund of Rupees one crore filed by an assessee (now corporate debtor) before the Service Tax department was rejected, and the assessee had filed an appeal to the Tribunal before proceedings under IBC were initiated, it may be advantageous to the company or for its new owners to proceed with the appea....