Ghanashyam Mishra and Sons Pvt Limited vs. Edelweiss Asset Reconstruction Company Limited: Hon'ble Supreme Court

The judgment of the Hon’ble Supreme Court in the matter of Ghanashyam Mishra and Sons Pvt Limited vs. Edelweiss Asset Reconstruction Company Limited (Judgment dated 13.04.2021 in Civil Appeal No. 8129/2019) has laid to rest the claims which are raised by various statutory authorities and other creditors even after the approval of Resolution Plans. It has been held that the claims of the creditors which are not included in the Resolution Plan cannot be raised before any forum and thus, the creditors are barred to raise any claim accruing prior to the transfer of the Corporate Debtor to the successful Resolution Applicant.

The intent being settlement and resolution of debts at a single stroke. The judgment creases the ambiguity and emphasizes that the approved Resolution Plan is binding on all parties and no further claims can be raised against the Corporate Debtor by virtue of Section 30 read with section 31 of the Insolvency and Bankruptcy Code, 2016. This shall stall multifarious and unending litigations in order to ensure that the Corporate Debtor moves forward getting a clean startup with no burden of past liabilities.