Capricon Food Products Indian Limited Vs Conveyor Engineering Systems (Madras High Court)
The Madras High Court considered a Civil Revision Petition challenging an order of the executing court that had allowed execution proceedings to recover ₹34,53,303 based on an award passed by the Micro, Small and Medium Enterprises (MSME) Council. The petitioner, who was the respondent/judgment debtor in the execution petition, argued that the execution proceedings were not maintainable because the company had undergone a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC), and a resolution plan had already been approved by the National Company Law Tribunal (NCLT), Chennai on 12 July 2023.
The petitioner contended that once the resolution plan was approved under Section 31 of the IBC, any claims not included in the resolution plan stood extinguished. The petitioner further submitted that the respondent had failed to submit its claim during the CIRP process despite having knowledge of the proceedings. According to the petitioner, the executing court failed to properly consider the legal implications of the CIRP, the moratorium under Section 14 of the IBC, and the effect of the approved resolution plan. The petitioner relied on decisions of the Supreme Court, including Electrosteel Limited vs Ispat Carrier Private Limited (2025 INSC 525) and Ghanashyam Mishra and Sons Private Limited vs Edelweiss Asset Reconstruction Company Limited (2021 SCC Online SC 313).
