No Proceedings Allowable on Claims Excluded from Approved Resolution Plan u/s 31(1) of IBC: CESTAT [Read Order]
Relying on the Supreme Court’s decision in Ghanashyam Mishra and Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Ltd. (Civil Appeal No. 8129 of 2019), the tribunal reiterated that once a Resolution Plan is approved, all claims not forming part of it stand extinguished, including statutory dues.
![No Proceedings Allowable on Claims Excluded from Approved Resolution Plan u/s 31(1) of IBC: CESTAT [Read Order]](https://images.taxscan.in/h-upload/2025/06/25/2054177-resolution-plan.webp "No Proceedings Allowable on Claims Excluded from Approved Resolution Plan u/s 31(1) of IBC: CESTAT [Read Order]")
The Chennai Bench of Customs,Excise and Service Tax Appellate Tribunal ( CESTAT ) held that no proceedings are allowable on claims excluded from an approved Resolution Plan under Section 31(1) of the Insolvency and Bankruptcy Code (IBC),2016.
Dishnet Wireless Limited,appellant-assessee, had approached the National Company Law Tribunal (NCLT) for liquidation, and the Resolution Plan was approved. The counsel argued that since the plan was accepted, the demands in the impugned order could not survive, and the appeal should be treated as abated.
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However, the department submitted that although the Resolution Plan was approved and a Resolution Professional was appointed, the professional later sought to withdraw and requested the appointment of a new one. Therefore, the process had not reached finality, and the appeal should be heard and decided.
The two member bench comprising P.Dinesha(Judicial Member) and Vasa Seshagiri Rao (Technical Member) considered the submissions from both sides and examined the NCLT order. Since the Resolution Plan had been approved, an undisputed fact, the tribunal held that the appeal could not survive.
This view aligned with the Supreme Court’s ruling in Ghanashyam Mishra and Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Ltd. (Civil Appeal No. 8129 of 2019), decided on 13 April 2021, which had been consistently followed by various CESTAT Benches.
The Supreme Court had clarified that once a Resolution Plan is approved under Section 31(1) of the IBC, all claims not included in the plan stand extinguished and no proceedings can be continued in respect of such excluded claims. It further held that this principle applies to statutory dues as well, even if owed to the Central or State Governments.
In view of this settled position, the tribunal concluded that the present appeal could not be continued and accordingly disposed of the matter.
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