SC Upheld Clean Slate Principle Due to Binding Effect of Approved Resolution Plan

Ujaas Energy Ltd. Vs West Bengal Power Development Corporation Ltd. (Supreme Court of India) The Supreme Court examined an appeal arising from arbitration proceedings involving a corporate debtor that had undergone Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The dispute centered on whether a counterclaim raised by the respondent in arbitration could survive after approval of a resolution plan and whether a plea of set-off could still be permitted. The appellant had been awarded a contract for installation of solar power plants in 2017. Subsequ...