Extinguishment of Liabilities Post Approval of Resolution Plan?

Ghanashyam Mishra and Sons Private Ltd. Vs Edelweiss Asset Reconstruction Company Ltd. (Supreme Court of India)

FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER

In the case of Ghanashyam Mishra and Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Limited & Ors.[1], the Hon’ble Apex Court held that once the resolution plan is approved by the Adjudicating Authority, any creditor, including the tax authorities or other government authorities, are not entitled to recover any claims or claim any debts owed to them by the Corporate Debtor, accruing prior to transfer date. 

Facts of the case:

Several special leave petitions were filed before the Supreme Court, w.r.t. resolution of Electrosteel Steels Ltd., Binani Cement Ltd., Orissa Manganese & Minerals Ltd. and Monnet Ispat & Energy Ltd. For brevity, let us consider the facts of one the matters:

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