Moonshine effect in IBC proceedings

Once a resolution plan is approved under Section 31, creditors and statutory authorities cannot ordinarily pursue pre CIRP claims that were required to be submitted and dealt with in the CIRP but were not provided for in the approved plan. 

The principle that gives the finality to the clean slate principle, also referred to as Moonshine effect, protects the certainty necessary for resolution and enables the successful resolution applicant to take over the corporate debtor with a determinable liability burden.