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ARTICLE · 06 JUNE 2025

Insolvency Law

JSA Advocates & Solicitors
JSA Advocates & Solicitors
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On April 2, 2025, the Madurai Bench of the Madras High Court ("Madras HC"), in M/s. Empee Distilleries Limited vs. The Superintending Engineer and Ors.1, delivered a pivotal ruling on the interplay between the Insolvency and Bankruptcy Code, 2016 ("IBC") and statutory claims under litigation.

IndiaInsolvency/Bankruptcy/Re-Structuring
Varghese Thomas
Varghese Thomas
Fatema Kachwalla
Fatema Kachwalla
Shaan Mamta Bhatt
Shaan Mamta Bhatt
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Known statutory claims survive Insolvency and Bankruptcy Code, 2016 resolution plan, if not disclosed

On April 2, 2025, the Madurai Bench of the Madras High Court ("Madras HC"), in M/s. Empee Distilleries Limited vs. The Superintending Engineer and Ors.1, delivered a pivotal ruling on the interplay between the Insolvency and Bankruptcy Code, 2016 ("IBC") and statutory claims under litigation. The Madras HC held that a claim pending before a statutory appellate body is not extinguished upon approval of a resolution plan by the National Company Law Tribunal ("NCLT") if it was known but not disclosed during the Corporate Insolvency Resolution Process ("CIRP"). This decision underscores the duty of the Interim Resolution Professional ("IRP") and promoters to ensure full transparency regarding known debts.

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