SC Reiterates Finality And Binding Nature Of A Resolution Plan In CIRP Under IBC

In Electrosteel Steel Ltd v Ispat Carrier, 2024 SCC OnLine SC 829, the SC reiterated well-established principles regarding treatment of an operational creditor's claims in a CIRP under the Insolvency and Bankruptcy Code, 2016 ('IBC').

Factual Background:

1. The Respondent was an operational creditor ('OC') responsible for the supply of telescopic and type-mounted cranes, 75-ton crawler cranes, hydra and trailers on hiring basis to the Appellant. The Appellant did not make payment for INR 1,59,09,214.33 for the supply of the aforesaid. Owing to this failure, the Respondent filed two claim petitions before the West Bengal Micro, Small and Medium Facilitation Council ('Facilitation Council') under the Micro, Small and Medium Enterprises Development Act, 2006 ('MSME Act') for a total amount of INR 1,59,09,214.