Arbitral Award For Claims Not Included In IBC Resolution Plan Can't Be Enforced: Supreme Court

The Supreme Court held that claims not included in an IBC resolution plan are not enforceable against the successful resolution applicant, citing the "clean slate" principle. This ruling in the Electrosteel Steel Limited vs. Ispat Carrier case reinforces the idea that once a resolution plan is approved under the Insolvency and Bankruptcy Code, it binds all stakeholders, and any claims not part of the plan stand extinguished. This promotes the effectiveness of the resolution process by providing certainty to the resolution applicant and facilitating the revival of the distressed corporate debtor without the burden of past liabilities.