Yes Bank Limited Vs Katerra India Private Limited (NCLT Bengaluru)
NCLT Bengaluru held that once the Resolution Plan is approved, no claim that is not a part of the Resolution Plan can exist or continue. Thus, changes in the resolution plan post adjudication of arbitration proceedings not tenable.
Facts- In February 2019, Vikas Telecom Private Limited (Developer/VTPL) appointed Synergy Property Development Services Pvt. Ltd. (Synergy) as the Project Management Consultant. The Developer also awarded the contract for the Design and build package works of the Project to Katerra India Pvt Ltd as the contractor of the Project.
Katerra failed to meet the project deadline, leading to a change order and extended timelines for structural top-out, structural completion, and glazing completion. Despite these extensions, Katerra failed to fulfill its obligations, resulting in losses and long-delays. ECPWPL issued notices, citing non-performance, long-delays, and losses incurred due to descoping, additional costs, and additional costs. ECPWPL had to descope work, provide advances, and make direct payments to Katerra’s vendors.
Katerra was admitted into insolvency in September 2023, and ECPWPL filed a claim of INR 78.16 crore for losses and expenses incurred due to Katerra’s non-performance of contractual obligations. ECPWPL filed its claim in Form B as an ‘operational creditor’ in February 2024, but was disputed by Katerra India Pvt Ltd’s claim of INR 160.46 crore. However, the RP issued a demand cum arbitration notice dated 1 March 2024 (Arbitration Notice) and, on 11 March 2024, informed ECPWPL that due to Katerra’s claim of INR 160.46 crore (Katerra’s Claim), ECPWPL’s claim was disputed and could not be admitted. ECPWPL responded to the arbitration notice, denying liability and counterclaiming INR 78.16 crore, arising from Katerra’s non-performance under the contract.
