By maintaining a clear framework that prevents perpetuity of claims against the corporate debtor, resolution applicants are encouraged to step forward and takeover the stressed entity. This ensures that on implementation of the resolution plan, the resolution applicant is not bombarded by a sudden influx of past claims of the entity prior to CIRP. The rationale for this legislative provision is to ensure that all valid claims are addressed in the approved resolution plan itself thereby leaving little to no room for such claims to be brought forth after the resolution plan has been approved.

The clean slate theory is founded on the basis of Section 31 of IBC which provides that the resolution plan, once approved by the adjudicating authority is 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 the law such as authorities to whom statutory dues are owed, guarantors and other stakeholders involved in the resolution plan. In this context, it is apposite to evaluate the ambit of the clean slate theory and its limitations. However, not much has been said on the interplay of the clean slate theory and the initiation of CIRP against guarantors for the same debt and default as the principal borrower against whom CIRP has already been initiated. Since the conceptualisation of the clean slate theory, the same has been widely relied on as a non-negotiable factor to be fulfilled on approval of the resolution plan. This was informed by provisions of the Code and was delivered in response to the issue of validity of undecided claims, particularly those of personal guarantors. Satish Kumar Gupta pronounced by the Supreme Court in 2019. The clean slate theory found its footing in Essar Steel (India) Ltd.

One of the core principles that govern the CIRP and implementation of the resolution plan is the clean slate theory. Research information about other companies.Since the inception of the Insolvency and Bankruptcy Code, 2016 (IBC/the Code), the corporate insolvency resolution process (CIRP) has been shaped by the amendments to the Code and its regulations, and judicial developments alike. On our site you can find many other information about headquarters of any company. Have you found Clean Slate Debt Services Llc Headquarters information? We’re accomplishing this through high-quality medication treatment led by physicians, combined with individualized treatment and hands-on care. Īt CleanSlate, our mission is to transform the healthcare experience for people suffering from opioid and alcohol addictions. CleanSlate - Medication-Assisted Treatment Drug & Alcohol.

Clean slate debt services