⚖️ Supreme Court | M/s Tata Steel Ltd. v. Varsha
The Supreme Court reaffirmed the “Clean Slate” Principle under the Insolvency and Bankruptcy Code, 2016.
✅ Once a Resolution Plan is approved under Section 31(1) of the IBC, all claims not crystallized or included in the approved plan stand extinguished.
This ensures that the Successful Resolution Applicant takes over the corporate debtor free from unresolved past liabilities, providing certainty and promoting effective insolvency resolution.
Key Takeaway:
Only claims forming part of the approved Resolution Plan survive. Unresolved or unquantified claims cannot be pursued thereafter.
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