In terms of Section 31 of IBC, all demands raised against the Corporate Debtor pertaining to the period prior to the Resolution Plan effective date stand automatically extinguished in terms of approved Resolution Plan – Orissa Manganese & Minerals Ltd. Vs. State of Odisha and Ors. – Orissa High Court
Hon’ble Orissa High Court held that:
(i) Successful Resolution Applicant should start with fresh slate on the basis of the Resolution Plan approved shunning its prior status as Corporate Debtor
(ii) Upon approval of the Resolution Plan, the Corporate Debtor no more stands as the Corporate Debtor and it is only under the legal obligation as being in the management of the Corporate Debtor strictly in terms of the Resolution Plan.
(iii) In terms of Section 31 of IBC, all those impugned demands raised against the Corporate Debtor pertaining to the period prior to the Plan Effective Date stand automatically extinguished in terms of Approved Resolution Plan.