M/S Jsw Energy (Utkal) Limited, Jharsuguda. v. State of Odisha
Insolvency and Bankruptcy Code, 2016 – Section 31(1) – binding effect of approved resolution plan – extinguishment of claims not forming part of the plan
Case brief
What is this about?
JSW Energy (Utkal) Ltd v. State of Odisha (Revenue and Disaster Management Dept) — Orissa High Court, W.P.(C) No.2551 of 2025, Dr. S.K. Panigrahi, J., decided 20.06.2025. Post-resolution-plan recovery by Tahasildar, Lakhanpur of pre-implementation rent, cess and conversion fees (OPDR Act 1962; AG audit objection) quashed as breach of Section 31 IBC; unclaimed pre-CIRP claims stand extinguished on plan approval; statutory dues not on a higher footing; audit objection not adjudication; refund of deposits made under protest ordered within four weeks; Ghanashyam Mishra (2021) 9 SCC 657 applied, Essar Steel (2020) 8 SCC 531 relied on.
What did the court decide?
Impugned demand notices quashed as breaching Section 31 IBC; Opposite Parties directed to refund all amounts deposited by the Petitioner under protest within four weeks of the judgment; interim order, if any, vacated.