In Brief
A corporate debtor challenged the execution of an arbitration award passed by the MSE Facilitation Council. The dispute concerned whether an arbitration claim, excluded from a NCLT-approved insolvency resolution plan and settled at nil, could still be enforced. The Supreme Court held that once a resolution plan is approved, all claims outside it stand extinguished. The Facilitation Council thus lost jurisdiction to arbitrate the claim, making the award a nullity. The Court clarified that objections to award execution under Section 47 CPC need not await Section 34 challenges first. The appeal was allowed and execution proceedings were quashed.
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