Arbitral Award for Claims Not in IBC Resolution Plan Cannot Be Enforced: SC

Arbitral Award for Claims Not in IBC Resolution Plan Cannot Be Enforced: SC

The Court made several key findings in the case. First, it ruled that objections to the execution of an award could be raised under Section 47 of the Civil Procedure Code (CPC) on the grounds of jurisdictional issues or voidness, even if no petition had been filed under Section 34 of the Arbitration and Conciliation Act. Secondly, the Court relied on established precedents, including *Ghanshyam Mishra & Sons v. Edelweiss Asset Reconstruction Co. Ltd.* and *Essar Steel India Ltd. v. Satish Kumar Gupta*, to conclude that once a resolution plan is approved by the NCLT under Section 31 of the Insolvency and Bankruptcy Code (IBC), all claims not included in the resolution plan are deemed extinguished. Finally, the Court determined that since the respondent’s claim was extinguished after the resolution plan’s approval, the Facilitation Council lacked the jurisdiction to pass the arbitral award.

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