Liquidated Damages Validly Deducted During CIRP Cannot Be Refunded After Approval Of Resolution Plan: NCLAT

NCLAT held that liquidated damages validly deducted during the CIRP (Corporate Insolvency Resolution Process) cannot be refunded after the approval of the resolution plan. The appellate tribunal reasoned that the resolution plan, once approved, binds all stakeholders, including operational creditors whose claims for liquidated damages were already accounted for during the CIRP. This decision reinforces the finality of the resolution plan and its binding effect on the treatment of claims, including deductions made for liquidated damages prior to its approval.