Delhi High Court Reinforces ‘Clean Slate’ Protection for JAL After Insolvency Resolution

Saraf and Partners successfully represented Jaiprakash Associates Limited (“JAL”) (now known as Adani Infrastructure Integrated Solutions Limited) before the Delhi High Court in Jaiprakash Associates Limited v. The Office of the Commissioner of Customs Air Cargo Complex Import (2026:DHC:7356-DB). 

By its judgment dated 2 September 2026, a Division Bench comprising Hon’ble Mr. Justice Anil Kshetrapal and Hon’ble Ms. Justice Shail Jain allowed JAL’s writ petition and quashed the Customs Authority’s order confirming differential customs duty, interest and penalty arising from a transaction predating JAL’s Corporate Insolvency Resolution Process (“CIRP”). 

The judgment firmly reinforces a fundamental safeguard under India’s insolvency regime: once a resolution plan has been approved, the successful resolution applicant is entitled to take over the corporate debtor on a “clean slate”, without being confronted by surprise legacy claims that were neither submitted nor dealt with during the CIRP.

This decision is notable for applying the “clean slate” principle to a Customs Act adjudication issued after a resolution plan was approved. It draws a clear distinction between judicial precedents that allow authorities to adjudicate liabilities during the CIRP and situations where post-approval adjudications would undermine the finality of the resolution plan. 

The Delhi High Court held that: 

• ⁠A claim under the IBC arises from the underlying right to payment. It does not become a post-CIRP claim merely because it is quantified or adjudicated subsequently.  
• Once the statutory public announcement inviting claims has been issued, the responsibility for filing its claim lies upon the creditor. The corporate debtor is not required to individually notify every governmental or statutory authority. 
• ⁠An approved resolution plan is binding upon all creditors, including governmental and statutory authorities.

The Court observed that permitting such claims would defeat the purpose of the IBC, disturb the financial assumptions underlying an approved resolution plan and expose the successful resolution applicant to unexpected legacy liabilities.

The Court accordingly quashed the Customs Authority’s order.

The judgment provides significant protection to successful resolution applicants and resolved companies by strengthening finality, commercial certainty and value preservation in insolvency resolutions. 

JAL was represented before the Delhi High Court by Saraf and Partners. The matter was argued by Gauhar Mirza (Partner) assisted by Syamantak Sen, Kaveesh Nair, Jeetendra Vishwakarma and Tanay Khanna.

Saraf and Partners has also advised JAL and Adani Enterprises Limited throughout JAL’s insolvency resolution process and in connection with the implementation of Adani Enterprises’ successful resolution plan. The plan was approved by JAL’s Committee of Creditors on 31 October 2025 and subsequently approved by the NCLT, Allahabad Bench on 17 March 2026.

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