Proceedings Cannot be Initiated Against a Company if Resolution Plan Approved u/s 31 by AA: Kerala HC Quashes Order

The Kerala High Court has ruled that proceedings cannot be initiated against a company if its resolution plan has been approved under Section 31 of the IBC by the Adjudicating Authority (AA), and has quashed such an order. This significant decision reinforces the "clean slate" principle of the Insolvency and Bankruptcy Code. Once a resolution plan is approved, it is binding on all stakeholders and extinguishes past liabilities. The court's ruling ensures that a company emerging from insolvency is not burdened by fresh proceedings related to pre-insolvency periods, providing a clear path to revival.