# In the matter of Shirdi Industries Limited

> NCLT judgment dated 2024-01-16. Citation: TCN-2024-NCLT-03046. This case involves an application (IA 3524/2023) filed by Rakesh Kumar Agarwal, the Resolution…

- **Court:** NCLT
- **Order date:** 16 Jan 2024
- **Citation:** TCN-2024-NCLT-03046
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shirdi-industries-limited-17f85287

## Summary

### Background

This case involves an application (IA 3524/2023) filed by Rakesh Kumar Agarwal, the Resolution Applicant of Shirdi Industries Limited (Corporate Debtor), seeking directions regarding the payment of operational creditors and resolution of contingent liabilities under the approved Resolution Plan. The Resolution Plan was approved on 12.12.2017. The applicant sought clarification on Clause No. 57 and 58 of the resolution plan, pertaining to payments to operational creditors and contingent liabilities, particularly concerning statutory, tax, and government authorities. The applicant also stated that they are receiving notices and facing adjudication proceedings for assessment periods prior to the approval of the resolution plan.

## Facts

Rakesh Kumar Agarwal, the Resolution Applicant of Shirdi Industries Limited (Corporate Debtor), filed IA 3524/2023 seeking directions regarding payments to operational creditors and resolution of contingent liabilities under the approved Resolution Plan. The Resolution Plan was approved on 12.12.2017. The application concerns Clause No. 57 and 58 of the resolution plan, which address payments to operational creditors and contingent liabilities, especially concerning statutory, tax, and government authorities. The applicant claimed to be receiving notices and facing adjudication proceedings for assessment periods prior to the plan approval date. The Respondent, CA Devender P. Jain, the former Resolution Professional, filed a reply. The Tribunal had previously initiated

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## Issues and analysis

### Issue 1: Whether the Resolution Applicant can be held liable for claims arising before the approval date of …

**Ratio:** The principle of 'Clean Slate' as consistently followed and the law laid down by the

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**Reasoning:** The court reasoned that fastening the Resolution Applicant with liabilities prior to the

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**Interpretation:** The 'clean slate' principle means that once a resolution plan is approved, the

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**Application:** Applying this principle to the facts, the court clarified that the Corporate

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Rakesh Kumar…
- **Respondents:** Shirdi Industries…; Devender P…

## Timeline

- **2017-04-24 — Application under…**: Applicant filed an application under Section 10 of the IBC 2016 before this Tribunal for…
- **2017-05-18 — CIRP Init…**: Tribunal allowed the application under Section 10 of IBC and initiated Insolvency…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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