Stakeholders Can't Impose Penalties, Claim Dues From Corporate Debtor After Approval Of Resolution Plan: Delhi High Court

The Delhi High Court has ruled that stakeholders must bear penalties and claim dues as stipulated in a corporate debtor's resolution plan under the Insolvency and Bankruptcy Code (IBC). This decision clarifies that penalties imposed on a corporate debtor cannot be overridden by the resolution plan. Stakeholders are entitled to claim their dues according to the terms of the resolution plan, even if this includes penalties. This ruling aims to ensure that the resolution process under IBC remains fair and equitable, adhering to the prescribed legal framework and ensuring that all claims, including those for penalties, are addressed properly.