Corporate Insolvency Resolution Plan Nullifies Prior Arbitral Award, Extinguishing Claims Outside Approved Restructuring Framework

SC adjudicated a dispute concerning the executability of an arbitral award post-corporate insolvency resolution plan. The Court held that upon NCLT's approval of the resolution plan, the respondent's claim stood extinguished, rendering the Facilitation Council's arbitral award dated 06.07.2018 non-executable. The Court rejected the HC's interpretation that the Facilitation Council retained jurisdiction to pronounce the award after the resolution plan's approval. Consequently, the SC allowed the appeal, declaring the award void and unenforceable, emphasizing that claims outside the resolution plan cannot be pursued post-NCLT approval. .....

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