Electrosteel Steel Limited vs ISPAT Carrier Private Limited 2025 INSC 525 - S.34 Arbitration Act - Execution Of Arbitration Award - S. 47 CPC Objections - IBC Moratorium
Arbitration and Conciliation Act 1996 - Section 34 ; Code of Civil Procedure 1908 - Section 47 - Objection to execution of an award under Section 47 CPC is not dependent or contingent upon filing a petition under Section 34 of the 1996 Act (Para 49)- a plea of nullity qua an arbitral award can be raised in a proceeding under Section 47 CPC but such a challenge would lie within a very narrow compass.[Context: SC held that the view taken by the High Court that because the appellant did not challenge the award under Section 34 therefore, it was precluded from objecting to execution of the award at the stage of Section 47 of CPC is wholly unsustainable.]
Code of Civil Procedure 1908 - Section 47 - An objection as to executability of the decree can be raised but such objection is limited to the ground of jurisdictional infirmity or voidness- only a decree which is a nullity can be the subject matter of objection under Section 47 CPC and not one which is erroneous either in law or on facts - Referred to Vasudev Dhanjibhai Modi Vs. Rajabhai Abdul Rehman (1970) 1 SCC 670 (Para 48)
Insolvency and Bankruptcy Code 2016 - Section 14- Moratorium is intended to ensure that no further demands are raised or adjudicated upon during the corporate insolvency resolution process so that the process can be proceeded with and concluded without further complications- Lifting of the moratorium does not mean that the claim of the respondent would stand revived notwithstanding approval of the resolution plan by the adjudicating authority. (Para 50.1)
Insolvency and Bankruptcy Code 2016 - Section 31 - Once a resolution plan is duly approved by the adjudicating authority under sub-section (1) of Section 31, all claims which are not part of the resolution plan shall stand extinguished and no person will be entitled to initiate or continue any proceeding in respect to a claim which is not part of the resolution plan -A successful resolution applicant cannot be faced with undecided claims after the resolution plan is accepted. Otherwise, this would amount to a hydra head popping up which would throw into uncertainty the amount payable by the resolution applicant. (Para 50)
