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DIPANKAR DATTA, AUGUSTINE GEORGE MASIH
Ujaas Energy Ltd. – Appellant
Versus
West Bengal Power Development Corporation Ltd. – Respondent
| Table of Content |
|---|
| 1. facts surrounding the corporate insolvency and arbitration. (Para 3) |
| 2. parties' arguments on claims and counterclaims. (Para 4 , 5 , 6) |
| 3. court's reasoning about claims under the resolution plan. (Para 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24) |
| 4. decision on the plea of set-off and its implications. (Para 25 , 26 , 27 , 28 , 29) |
| 5. conclusion and resolution of the appeal. (Para 30 , 31 , 32) |
JUDGMENT :
1. Leave granted.
3. Facts, relevant for the disposal of the present appeal, are as follows:
4. Taking exception to the impugned order, Mr. Abhijit Sinha, learned senior counsel for the appellant argued that since the respondent failed to raise its claim before the Resolution Professional within the prescribed time, it could not subsequently assert the same by way of counterclaim in the arbitration proceedings, as the claim stands barred upon approval of the resolution plan. He further contended that the Tribunal and the Single Judge rightly ruled that, after such approval, the respondent cannot maintain any counterclaim in respect of a claim that was not submitted to the Resolution Professional prior thereto. Allowing such a c
Post-approval of a corporate resolution plan, claims not included therein are extinguished, yet a plea of set-off may be permitted as a defense in arbitration, ensuring fairness without allowing affi....
The approval of a Resolution Plan under the IBC extinguishes all claims not included in it, making such claims non-justiciable in arbitration.
Once a resolution plan is approved under the IBC, all claims not part of the plan are extinguished, and the tribunal lacks jurisdiction to adjudicate on such claims.
IBC is a time bound process – Plea of not being aware of newspaper pronouncements is not one which should be available to a commercial party.
The approved resolution plan under the IBC extinguishes claims not included, rendering any arbitral award related to such claims non-executable.
The main legal principle established in the judgment is the extinguishment of pre-existing and undecided claims upon approval of the Resolution Plan under Section 31 of the Insolvency and Bankruptcy ....
Execution of an arbitral award is not maintainable during corporate insolvency proceedings as approved resolution plans render prior claims extinguished.
The Resolution Plan approved under the Insolvency and Bankruptcy Code meets legal requirements, entitling creditors and stakeholders to compliance without waiving statutory obligations.
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