The Supreme Court, in its recent judgment in Ujaas Energy, clarified that the Clean Slate Doctrine is primarily aimed at extinguishing claims against a corporate debtor after resolution, but it does not necessarily eliminate every legal consequence arising from the underlying facts.

About the Clean Slate Doctrine

The Clean Slate Doctrine is an important principle under the Insolvency and Bankruptcy Code (IBC), 2016. It provides that once a company successfully completes the Corporate Insolvency Resolution Process (CIRP) and a resolution plan is approved, the successful resolution applicant should be able to operate the company free from past liabilities that are not included in the approved resolution plan.

The doctrine essentially gives the corporate debtor a “fresh start”, preventing old claims from continuing to burden the new owner and undermining the resolution process.

Legal Basis

The doctrine is primarily associated with Section 31 of the IBC, 2016. Once the National Company Law Tribunal (NCLT) approves a resolution plan, it becomes binding on the corporate debtor, creditors, employees, members, guarantors and other stakeholders covered by the law.

Important Supreme Court Judgments

Essar Steel Case (2020)

In Committee of Creditors of Essar Steel India Ltd. v. Satish Kumar Gupta, the Supreme Court emphasised that the IBC aims to bring claims against the corporate debtor into a unified insolvency process.

Once a resolution plan is approved, claims that are not included in the plan stand extinguished, preventing parties from subsequently pursuing such claims against the successful resolution applicant.

Arun Kumar Jagatramka Case (2021)

In Arun Kumar Jagatramka v. Jindal Steel and Power Ltd., the Court reiterated that approval of a resolution plan under Section 31 provides the successful resolution applicant with a clean slate, allowing the business to operate without past financial encumbrances.

Ghanashyam Mishra Case (2021)

In Ghanashyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Co. Ltd., the Supreme Court clarified that claims not forming part of the approved resolution plan stand extinguished.

This principle also applies to government authorities, which cannot subsequently pursue claims that were not included in the approved resolution plan.

Ebix Singapore Case (2021)

In Ebix Singapore Pvt. Ltd. v. Committee of Creditors of Educomp Solutions Ltd., the Court emphasised that an approved resolution plan binds all stakeholders, including parties that may not have directly participated in the CIRP.

Vaibhav Goel Case (2025)

In Vaibhav Goel v. DCIT, the Supreme Court reaffirmed that belated claims cannot ordinarily be introduced after approval of the resolution plan, reinforcing the objective of finality in the insolvency process.

Recently, experts described India’s performance in the Environmental Performance Index (EPI) 2026 as a wake-up call that requires greater attention towards environmental protection and sustainable development.

About Environmental Performance Index

The Environmental Performance Index (EPI) is a biennial index that evaluates and ranks countries according to their environmental performance. It provides a data-driven assessment of how effectively countries are addressing major environmental challenges.

The index is developed by the Yale Center for Environmental Law & Policy, the Columbia University’s Center for International Earth Science Information Network (CIESIN), and the Yale Center for Geospatial Solutions.

EPI Framework

The EPI evaluates countries using 47 indicators across 12 issue categories. These indicators are grouped under three broad policy objectives:

1. Environmental Health

This objective assesses environmental factors that directly affect human health and well-being.

2. Ecosystem Vitality

This objective evaluates the condition and protection of ecosystems and natural resources, including biodiversity and other ecological parameters.

3. Climate Change

This objective measures countries’ performance in addressing climate change, including their progress towards climate-related goals.

Significance of the EPI

The EPI serves as an important global benchmark for environmental sustainability. It helps assess how close countries are to achieving international environmental commitments, including the UN Sustainable Development Goals (SDGs) and the objectives of the Paris Climate Agreement.

EPI 2026: Key Highlights

In the EPI 2026, Estonia secured the first position, followed by Luxembourg, the United Kingdom, Finland and the Netherlands among the top five countries.

Laos was ranked the lowest in the index.

India was ranked 176th out of 177 countries, with an overall EPI score of 22.46, significantly below the regional average of 31.81.