Patanjali Foods Limited Vs Assistant Commissioner St Fac and Others (Andhra Pradesh High Court)
Andhra Pradesh High Court held that claim not part of resolution plan stand extinguished on the date of approval of resolution plan and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan.
Facts- The petitioner in both these cases is one M/s. Patanjali Foods Limited. The petitioner, on account of its financial difficulties, had been subjected to insolvency proceedings under Insolvency and Bankruptcy Code 2016.
In the course of these proceedings, a resolution plan was prepared by the committee of creditors and the same was approved by the National Company Law Tribunal, Mumbai Bench, by an order dated 04.09.2019. The resolution plan which had been approved by the NCLT provided that all dues of the creditors, including the dues of the State were to be adjusted out of amounts paid by the successful applicants in the resolution process.
The order of the NCLT was challenged before the National Company Law Appellate Tribunal (NCLAT), by way of Appeal No.1068 of 2019. The said appeal was dismissed on 09.12.2019 and the order of NCLT had become final.
