Claims Before Approval of Resolution Plan Extinguished on Approval of Plan u/s 31 of IBC: Orissa HC

The Orissa High Court ruled that claims made before the approval of a resolution plan are extinguished upon the plan’s approval under Section 31 of the Insolvency and Bankruptcy Code (IBC). The case involved a creditor challenging the extinguishment of claims after the resolution plan was approved. The court held that the approval of the resolution plan is binding on all stakeholders, and any claims not addressed in the plan are considered extinguished. This decision reinforces the finality of resolution plans and the importance of timely claim submissions during the insolvency process.