# Ballarpur Industries Limited vs. Haryana State Pollution Control Board

> NCLT judgment dated 2026-09-03. Citation: TCN-2026-NCLT-00994. Ballarpur Industries Limited (Corporate Debtor), having undergone Corporate Insolvency…

- **Court:** NCLT
- **Order date:** 3 Sept 2026
- **Citation:** TCN-2026-NCLT-00994
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/ballarpur-industries-limited-vs-ballarpur-industries-limited-4agw0

## Summary

### Background

Ballarpur Industries Limited (Corporate Debtor), having undergone Corporate Insolvency Resolution Process (CIRP) and resolution plan approval, filed an application (I.A. 579/2025) before the National Company Law Tribunal (NCLT) against the Haryana State Pollution Control Board (HSPCB). The application sought directions for HSPCB to withdraw a demand of INR 7,49,04,730/- related to excess expenses for land acquisition for the construction of a Ditch Drain and to restrain HSPCB from sealing the Corporate Debtor's unit. The Ditch Drain, constructed by the Irrigation Department for effluent discharge from industries including the Corporate Debtor's unit, became operational in December 2009. HSPCB had raised various demands for enhanced compensation over the years, which

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## Facts

A Ditch Drain was constructed by the Irrigation Department for carrying effluent of District Yamunanagar, with an initial estimated cost of Rs. 8.33 Crores.

The Ditch Drain became operational upon its full completion in December 2009.

M/s Finquest Financial Solutions Pvt. Ltd. filed an application under Section 7 of the IBC, leading to the Corporate Debtor, Ballarpur Industries Limited, being admitted into insolvency proceedings on 17.01.2020.

The Resolution Plan for Ballarpur Industries Limited was approved by the Adjudicating Authority under Section 31 of IBC on 31.03.2023, and a new Board of Directors was appointed on 12.06.2023.

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## Issues and analysis

### Issue 1: Whether the Corporate Debtor, after the approval of the resolution plan, is liable to pay the …

**Ratio:** Once a resolution plan is approved by the Adjudicating Authority, all demands and claims

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**Reasoning:** The Ditch Drain became operational in December 2009, and the CIRP commenced on

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**Interpretation:** Section 31(1) of the IBC ensures that the successful resolution applicant

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**Application:** The demand of Rs. 7,49,04,730/- by HSPCB is a pre-CIRP claim. Since HSPCB did

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## Parties

- **Judges:** SH. HARIHARAN…; LAKSHMI G…
- **Respondents:** Ballarpur…; Haryana State…
- **Other parties:** Finquest Financial…
- **Advocates:** Rishabh C…; Shekhar Raj…; +2 more

## Timeline

- **2003-04-11 — Decision for Di…**: Decision for acquiring land for…
- **2007-12-20 — Initial Demand…**: HSPCB asked the corporate debtor to pay Rs. 67.59 Lakhs towards contribution for land…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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