Supreme Court of India · 2021-04-13
GHANASHYAM MISHRA AND SONS PRIVATE LIMITED vs EDELWEISS ASSET RECONSTRUCTION COMPANY LIMITED
- Citation / case number
- SC 2019/22323
- Court
- Supreme Court of India
- Petitioner
- GHANASHYAM MISHRA AND SONS PRIVATE LIMITED
- Respondent
- EDELWEISS ASSET RECONSTRUCTION COMPANY LIMITED
- Author
- HON'BLE MR. JUSTICE B.R. GAVAI
- Bench
- HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN, HON'BLE MR. JUSTICE B.R. GAVAI, HON'BLE MR. JUSTICE HRISHIKESH ROY
Judgment text excerpt
The Supreme Court addressed critical questions regarding the binding nature of a Resolution Plan approved under the Insolvency and Bankruptcy Code, 2016. It ruled that once a Resolution Plan is approved by the adjudicating authority, all creditors, including the Central and State Governments, are bound by it. The court further clarified that the amendment to Section 31 by Act 26 of 2019 is substantive, not merely clarificatory, and creditors cannot initiate recovery proceedings for dues not included in the approved plan.