All Claims Before Approval Of Resolution Plan Are Extinguished Once Plan Is Approved U/S 31 Of IBC: Orissa High Court

The Orissa High Court ruled that all claims prior to the approval of a resolution plan are extinguished once the plan is approved under Section 31 of the Insolvency and Bankruptcy Code (IBC). The court held that the approval of the resolution plan binds all stakeholders, and any claims not included in the plan are extinguished. The court’s decision reinforces the finality of approved resolution plans, ensuring that they provide a clean slate for the resolution of insolvency. The ruling aims to provide certainty and stability in the insolvency resolution process by ensuring that all claims are addressed within the framework of the approved resolution plan.