All Claims Including Subject Matter Of Ongoing Arbitration Proceedings Stand Extinguished After Approval Of Resolution Plan: NCLT Bengaluru

The NCLT Bengaluru ruled that all claims, including those related to ongoing arbitration proceedings, stand extinguished after the approval of a resolution plan under the Insolvency and Bankruptcy Code (IBC). The ruling affirmed that once a resolution plan is approved by the committee of creditors and the tribunal, it overrides any previous legal claims, including those under arbitration. This decision ensures that the resolution process remains unaffected by external proceedings and aims to provide clarity on the finality of claims in insolvency matters. It highlights the supremacy of the IBC process in restructuring corporate debts.