Arbitral Awards is Not Enforceable if Claim Excluded from Approved Insolvency Resolution Plans: Supreme Court

The Supreme Court held that an arbitral award cannot be enforced if the claim was not part of an approved insolvency resolution plan. 

The court held that once the National Company Law Tribunal (NCLT) approves a resolution plan, all claims not incorporated within it are extinguished and cannot be pursued later.

The bench observed that allowing such claims would undermine the finality and certainty of the insolvency process.

Consequently, the Court set aside the execution of an arbitral award passed by a Micro, Small and Medium Enterprises (MSME) Facilitation Council after the resolution plan's approval. (Electrosteel Steels Ltd. v. Ispat Carrier Pvt. Ltd)