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IN THE HIGH COURT OF DELHI AT NEW DELHI
HARISH VAIDYANATHAN SHANKAR
Paharpur Cooling Towers Limited – Appellant
Versus
Sinnar Thermal Power Limited – Respondent
| Table of Content |
|---|
| 1. petition under arbitration act for enforcement. (Para 1 , 2) |
| 2. factual background involving dispute and arbitration. (Para 3 , 4 , 5 , 6 , 7 , 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16) |
| 3. arguments against execution and maintainability. (Para 17 , 18 , 19 , 20 , 21 , 22 , 23 , 24 , 25 , 26 , 27 , 28 , 29) |
| 4. court's initial assessment of execution's legal basis. (Para 30 , 31 , 32 , 33 , 34) |
| 5. recognition of execution's conflict with insolvency framework. (Para 35 , 36 , 37 , 38 , 39 , 40 , 41 , 42 , 43 , 44) |
| 6. rejection of corporate veil lifting in execution. (Para 45 , 46 , 48 , 49 , 50 , 51 , 52 , 53 , 54 , 55) |
| 7. denial of execution beyond the arbitral award's bounds. (Para 56 , 57 , 58 , 59 , 60 , 61 , 62 , 63 , 64 , 65) |
| 8. final order to dismiss the petition. (Para 66 , 67 , 68 , 69 , 70) |
JUDGMENT :
HARISH VAIDYANATHAN SHANKAR, J.
1. The present petition has been filed under Section 36 of the Arbitration and Conciliation Act, 1996 , A&C Act, read with Order XXI Rules 10 and 11 of the Code of Civil Procedure, 1908, seeking enforcement of theArbitral Award dated 12.11.2021, read with the correction Order dated 20.12.2021 , Arbitral Award, against all the Judgment De
Execution of an arbitral award is not maintainable during corporate insolvency proceedings as approved resolution plans render prior claims extinguished.
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.
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 requires compliance with the 90-day limitation under Section 34; execution petitions filed before this period are impermissible.
Parties challenging an arbitral award must do so exclusively under Section 34 of the Arbitration Act; raising new grounds or objections in execution proceedings is impermissible.
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.
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