Back
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 :
DIPANKAR DATTA, J.
1. Leave granted.
2. The challenge in this civil appeal, at the instance of a corporate debtor1[Appellant], is to a judgment and order dated 2nd September, 20242[impugned order] of the High Court at Calcutta3[High Court] on an intra-court appeal4[APOT No. 312/2024], whereby the judgment and order dated 21st August, 2024 of a Single Judge (spurning a challenge to an interim award of an Arbitral Tribunal5[Tribunal] laid by a public sector undertaking6[respondent]) was set aside and consequential directions were made.
3. Facts, relevant for the disposal of the present appeal, are as follows:
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.
Resolution plan approved despite 99.92% haircut; unclaimed pre-CIRP claims extinguished upon section 31 approval; NCLT limits reliefs to IBC/Companies Act; new management shielded under section 32A; ....
The Resolution Plan approved under the Insolvency and Bankruptcy Code meets legal requirements, entitling creditors and stakeholders to compliance without waiving statutory obligations.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
