New Delhi, May 1 -- In a ruling, the Supreme Court has held that an arbitration award passed after the approval of a resolution plan by the National Company Law Tribunal (NCLT) is not executable if the underlying claim was not included in the plan.

As a result, it set aside the orders of the Jharkhand High Court and the Executing Court and quashed the execution proceedings pending before the Commercial Court, Bokaro.

In Electrosteel Steel Ltd (now ESL Steel Ltd) vs Ispat Carrier Pvt Ltd [Civil Appeal No. 2896 of 2024], the Court reiterated that once a resolution plan is approved under Section 31(1) of the Insolvency and Bankruptcy Code (IBC), all claims not forming part of the plan are extinguished and cannot be pursued or enforced thro...