2023 (3) TMI 1555 - SCH - IBC

Approval of Resolution Plan - contingent liability - HELD THAT - The claim even if allowed in favour of M/s Shapoorji Pallonji and Co. Pvt. Ltd. will have no bearing on the rights and obligations of the appellant - M/s. Adani Power Limited, which are in terms of the Resolution Plan. It has been held by the judgment dated 23.02.2023, that the appellant cannot be saddled with any liability except what is mentioned in the Resolution Plan. The appeal is dismissed on the ground that the appellant has no grievance.

Summary

The Supreme Court of India, with Justices Sanjiv Khanna and M.M. Sundresh presiding, reviewed an appeal against the National Company Law Appellate Tribunal (NCLAT) decision dated February 23, 2023. The NCLAT had approved a Resolution Plan, noting no illegality in its approval by the Adjudicating Authority. However, it remarked that the Resolution Professional should not have included a "Contingent Provision" concerning the appellant, M/s. Adani Power Limited, given the case's specific facts.

The NCLAT granted the appellant the liberty to pursue all available contentions in ongoing arbitration proceedings, which should be decided on their own merits. The court clarified that the Resolution Plan is binding and cannot be subject to arbitration or other proceedings. The claim by respondent no. 1, Shapoorji Pallonji and Co. Pvt. Ltd., categorized as a "contingent liability," can be pursued in arbitration for adjudication and quantification, but any favorable outcome will not affect the rights and obligations of M/s. Adani Power Limited under the Resolution Plan.

The Supreme Court dismissed the appeal, stating that the appellant has no grievance, and disposed of any pending applications.