Alerts & Updates 16th Jul 2025
The judgment of the Madras High Court in M/s Empee Distilleries Ltd. v. The Superintending Engineer, TANGEDCO & Ors. (decided on 2 April 2025) brings to the forefront a significant and evolving debate within India’s insolvency jurisprudence, the scope and limits of the “clean slate” principle under the IBC. While the IBC seeks to offer resolution applicants freedom from past liabilities through Section 31(1), this case underscores the risks posed by undisclosed claims, particularly statutory dues under litigation, that were neither submitted nor accounted for during the CIRP. This write-up analyses the reasoning adopted by the High Court, its departure from established precedent, and the wider implications it may have for resolution applicants, RPs, and the finality of resolution plans.
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