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Supreme Court Of India Endorses The Fresh Start On A Clean Slate Principle - Insolvency/Bankruptcy/Re-structuring


Satish Kumar Gupta and Others
(Essar Steel case) held
that allowing claims apart from those covered in a resolution plan
to survive after the approval of a resolution plan militates
against the rationale of Section 31 of the IBC. The Supreme Court
held that the successful resolution applicant should be given an
opportunity to take over and run the business of the corporate
debtor on a clean slate. Accordingly, a resolution applicant should
not be suddenly faced with undecided claims which would
throw into uncertainty the amounts payable by a resolution
applicant to take over the business of the corporate debtor. ....

Mahenderk Khandelwal , Satish Kumar Gupta , Monnet Ispat Energylimited , Manish Kumar , Union Of India , Essar Steel India , Exchange Board Of India , Alok Industries , Monnet Ispat Energy , Tech Mahindra , Tech Mahindra Limited In Satyam , Committee Of Creditors , Company Law Board , Bhushan Power , Delhi High Court , Union Of India Judgment , Supreme Court , Committee Of Creditors Essar Steel India , Computers Services , National Company Law Appellate , Tata Steel , Bhushan Steel , Bankruptcy Code , Adjudicating Authority , State Government , Essar Steel India Limited ,