- (1.) Mr. Chowdhury, learned advocate appears on behalf of defendant and argues.
(2.) He submits section 30 in Insolvency and Bankruptcy Code, 2016 provides for submission of a resolution plan. Section 31 provides for approval of the plan. Consequence of approval of a resolution plan is for it to be binding on, inter alia, corporate debtor and its creditors. His client has had a resolution plan in respect of it, duly approved by the adjudicating authority. The application was by a resolution applicant, who is aware of this suit as would appear from the plan submitted and approved by the committee of creditors. However, no provision has been made in the plan for a right to payment, not reduced to judgment. A consequence of such a plan is, it is binding on plaintiff, being creditor of his client on a debt meaning a liability in respect of a claim is that it is such right not registered to judgment, of mesne profits, not reduced to judgment and therefore stands extinguished. To that extent the suit is now abated by operation of law. Plaintiff has already recovered possession and arrear rents. There is nothing further to be adjudicated. The application and the suit, both be dismissed.
(3.) He relies on judgment dated 15th November, 2019 of Supreme Court, inter alia, in Civil Appeals 8766-67 of 2019 ( Committee of Creditors of Essar Steel India Limited V. Satish Kumar Gupta and Others available at 2019 SCC OnLine SC 1478. Paragraph 88 is set out below :- "88. For the same reason, the impugned NCLAT judgment in holding that claims that may exist apart from those decided on merits by the resolution professional and by the Adjudicating Authority/Appellate Tribunal can now be decided by an appropriate forum in terms of Section 60(6) of the Code, also militates against the rationale of Section 31 of the Code. A successful resolution applicant cannot suddenly be faced with "undecided" claims after the resolution plan submitted by him has been accepted as this would amount to a hydra head popping up which would throw into uncertainty amounts payable by a prospective resolution applicant who successfully take over the business of the corporate debtor. All claims must be submitted to and decided by the resolution professional so that a prospective resolution applicant knows exactly what has to be paid in order that it may then take over and run the business of the corporate debtor. This the successful resolution applicant does on a fresh slate, as has been pointed out by us hereinabove. For these reasons, the NCLAT judgment must also be set aside on this count." He submits, there is object for the law by the Code. That object has caused consequences. The consequences led to several vires challenges against the Code. Supreme Court recently in Swiss Ribbons Private Limited Vs. Union of India reported in (2019) 4 SCC 17, while throwing out a challenge, said following in paragraph 121:- "121. We are happy to note that in the working of the Code, the flow of financial resource to the commercial sector in India has increased exponentially as a result of financial debts being repaid. Approximately 3300 cases have been disposed of by the adjudicating authority based on out-of-court settlements between corporate debtors and creditors which themselves involved claims amounting to over INR 1,20,390 crores. Eighty cases have since been resolved by resolution plans being accepted. Of these eighty cases, the liquidation value of sixty-three such cases is INR 29,788.07 crores. However, the amount realised from the resolution process is in the region of INR 60,000 crores, which is over 202% of the liquidation value. As a result of this, reserve Bank of India has come out with figures which reflect these results. Thus, credit that has been given by banks and financial institutions to the commercial sector (other than food) has jumped up from INR 4952.24 crores in 2016-2017, to INR 9161.09 crores in 2017- 2018, and to INR 13,195.20 crores for the first six months of 2018-2019. Equally, credit flow from non-banks has gone up from INR 6819.93 crores in 2016-2017, to INR 4718 crores for the first six months of 2018-2019. Ultimately, the total flow of resources to the commercial sector in India, both bank and non- bank, and domestic and foreign (relatable to the non-food sector) has gone up from a total of INR 14,530.47 crores in 2016-2017, to INR 18,469.25 crores in 2017-2018, and to INR 18,798.20 crores in the first six months of 2018-2019. These figures show that the experiment conducted in enacting the Code is proving to be largely successful. The defaulter's paradise is lost. In its place, the economy's rightful position has been regained. The result is that all the petitions will now be disposed of in terms of this judgment. There will be no order as to costs." ;