The ‘clean slate' doctrine has been one of the most
well-settled principles when it comes to the intended effects of
the Insolvency and Bankruptcy Code 2016
(“Code”). The doctrine of ‘clean
slate' essentially implies that once the Resolution Plan is
accepted by the Committee of Creditors and approved by the
Adjudicating Authority, no claim (whether satisfied or
dissatisfied) would survive. The doctrine is rooted in Section 31
(1) of the Code, which reads as under:
“31. (1) If the Adjudicating Authority is satisfied
that the resolution plan as approved by the committee of creditors
under sub-section (4) of section 30 meets the requirements as
referred to in sub-section (2) of section 30, it shall by order
approve the resolution plan which shall be binding on the corporate
debtor and its employees, members, creditors, including the Central
Government, any State Government or any local authority to whom a
debt in respect of the payment of dues arising under any law
