TaxTMI 
TaxTMI 
TaxTMI 
2025 (3) TMI 630
X X X X Extracts X X X X
X X X X Extracts X X X X
....i) In February 2019, Vikas Telecom Private Limited (Developer/VTPL) appointed Synergy Property Development Services Pvt. Ltd. (Synergy) [currently Colliers International (India) Property Services Limited's (Colliers)] as the Project Management Consultant of Parcel 3A & MLCP at Embassy Tech Village, Devarabisanahalli Village, Bangalore (Project) vide work order dated 6 February 2019. 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 vide the Notice of Award/Letter of Intent/Purchase Order No. 4900016856 dated 16 May 2019 (as amended from time to time) including but not limited to the Change Order dated 23 December 2021 (collectively referred to as the Contract). On 23 December 2020, by way of a deed of assignment read with the Contract, (Embassy Commercial Projects (Whitefield) Private Limited) ECPWPL, the Applicant herein was appointed as a co-developer by VTPL for undertaking the development, operation and maintenance of Block 3 & Block 4 of the Embassy Tech Village including the Project with effect from 28 December 2020. ii) Katerra failed to meet the project deadline, leading ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... of the Katerra's Claim as well as ECPWPL's Claim shall involve common facts, issues and evidence. vii) In these circumstances, both ECPWPL's Claim and Katerra's Claim must either be resolved in the arbitration proceedings. It is submitted that Katerra's Claim can only be determined after determination of ECPWPL's Claim in the same arbitral proceedings and hence, both Katerra's Claim and ECPWPL's Claim ought to be heard together by the arbitral tribunal. [Jharkhand Bijli Vitran Nigam Ltd. v. IVRCL Ltd. Company Appeal (AT) (Insolvency) No. 285 of 2018 @ Para 3] viii) In addition, it is submitted that any attempt to extinguish ECPWPL's Claim through the resolution plan would be unjust and detrimental as it would, while keeping RP's claim alive, nullify ECPWPL's rights and deprive it from asserting its claim and formulate necessary defences in the arbitration proceedings after the CIRP of the Katerra is complete. [Shapoorji Pallonji & Co. (P) Ltd. v. Kobra West Power Co. Ltd., 2023 SCC OnLine NCLAT 968 @ Paras 14&20]. Further, if ECPWPL's Claim is extinguished, then it would prevent ECPWPL from not only asserting ECPWPL's Claim independently of Katerra's Claim (which are also not ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tainable under law. b) It is submitted that the said prayers are not maintainable since the same the said prayers are against the bedrock of the principles of Insolvency and Bankruptcy Code and also the CLEAN SLATE PRINCIPLE. c) It is submitted that Successful Resolution Applicant cannot suddenly be faced with undecided claims after the resolution plan is submitted by him and has been accepted by the committee of creditors. In the present case the claims made by the Applicant herein are not admitted by the Resolution Professional and hence the Applicant herein is not entitled to any prayers that they have sought for. d) It is pertinent to note that the applicant in the present application has not sought directions from this Hon'ble Tribunal thereby calling upon the Resolution Professional to reconsider their claims, but on the contrary they have sought not to extinguish their claims. Such prayers would not fall in line with the essence of Insolvency and Bankruptcy Code but would run contrary to the same. Further if such players are allowed then a Pandora's Box would be open where, all the creditors would seek such reliefs as is sought for by the Applicant in the present a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o. Ltd , 2023 SCC OnLine NCLAT 968 vide order dated 23/02/2023 wherein the NCLAT has held that the parties even after the approval of the resolution plan are at liberty to proceed with the pending Arbitration and such proceedings are to be decided on its own merits. Hence we do not see any hindrance to Applicant of the Respondent to continue their respective claims in the Arbitration proceedings. 7) In addition, it is necessary to ascertain whether any liability or claim that is not included in the Resolution Plan will endure following its approval. 8) In this regard reliance is placed on the judgement of Hon'ble Supreme Court in the case of Ghanshyam Mishra & Sons Private Limited v. Edelweiss Asset Reconstruction Company Ltd (2021) 9 SCC 657 wherein it was held that, "23 That once a resolution plan is duly approved by the Adjudicating Authority under sub-section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 9) It is noted that the prayer of the Applicant to this Adjudicating Authority is to direct the Respondents that any future claim of the Applicant shall not stand extinguished after the Approval of the Resolution Plan. 10) We find it relevant to examine the main objective of the CIRP is the revival of the Corporate Debtor. This Objective of the IBC code is based on two paramount factors i.e the restructuring of the Corporate debtor and that such restructuring is carried out in a time bound manner. Reliance is placed on the judgment of Hon'ble Apex Court in the case of Swiss Ribbons Pvt. Ltd. and Anr. v. Union of India and Ors (2019) ibclaw.in 03 SC, order dated 25/01/2019, "11. As is discernible, the Preamble gives an insight into what is sought to be achieved by the Code. The Code is first and foremost, a Code for reorganization and insolvency resolution of corporate debtors. Unless such reorganization is effected in a time-bound manner, the value of the assets of such persons will deplete. Therefore, maximization of value of the assets of such persons so that they are efficiently run as going concerns is another very important objective of the Code. This, in turn, will promo....