Clean slate theory under IBC extinguishes pre-resolution statutory dues not covered by an approved resolution plan.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Approval of a resolution plan under the IBC extinguishes claims not included in the plan, including statutory dues, and the successful resolution applicant acquires the corporate debtor on a clean slate. Applying that principle, the Court found that demand and recovery notices based on liabilities arising before approval of the resolution plan could not be enforced after approval. The impugned notices, being outside the plan, were unsustainable insofar as they sought to recover pre-resolution dues and were set aside.....