Resolution plan binding effect coexists with pending arbitration over a disputed operational claim, preserving the arbitral challenge.

An approved resolution plan remains binding on stakeholders and ordinarily extinguishes claims not included in the plan, but pending arbitration over a disputed operational claim need not be terminated where the dispute was already sub judice and the claim had been treated as under verification or rejected in the insolvency process. On those facts, the tribunal found no illegality in approval of the resolution plan and declined to set it aside, while preserving the operational creditor's liberty to continue pursuing the arbitration on merits in accordance with law.

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Issues: Whether an operational creditor whose claim was not admitted during the corporate insolvency resolution process could still pursue pending arbitration proceedings after approval of the resolution plan, and whether the approved plan could be interfered with on that ground.

Analysis: The claim had been shown as under verification and later rejected in the resolution professional's uploaded list, while arbitration proceedings between the parties were already pending before the insolvency process commenced. The resolution plan, once approved, binds stakeholders and ordinarily extinguishes claims not forming part of the plan. At the same time, where the dispute was already sub judice in arbitration and the factual matrix showed that the claim was being treated as disputed, the pending arbitral proceedings were not required to be terminated merely because the plan stood approved. The tribunal found no illegality in the approval of the resolution plan itself, but considered it appropriate that the operational creditor be allowed to continue its arbitration contentions on merits.

Conclusion: The challenge to the approval of the resolution plan did not succeed, but the appellant was granted liberty to pursue the pending arbitration proceedings in accordance with law.

Final Conclusion: The approved resolution plan was not set aside, while the appellant's right to contest the underlying disputed claim before the arbitral forum was preserved.

Ratio Decidendi: Approval of a resolution plan does not, in the peculiar facts of a case, prevent continuation of already pending arbitration concerning a disputed operational claim, even though the plan remains binding and otherwise extinguishes unprovided claims.

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