# In the matter of Electrosteel Steel Limited vs. Ispat Carrier Private Limited

> SC judgment dated 2025-04-21. Citation: TCN-2025-SC-00024. The case involves an appeal against a High Court order regarding the execution of an arbitral…

- **Court:** SC
- **Order date:** 21 Apr 2025
- **Citation:** TCN-2025-SC-00024
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/electrosteel-steel-limited-vs-ispat-carrier-private-limited-cf2c2eec

## Summary

### Background

The case involves an appeal against a High Court order regarding the execution of an arbitral award. The respondent, Ispat Carrier Private Limited, filed claim petitions against the appellant, Electrosteel Steel Limited, before the West Bengal Micro, Small and Medium Facilitation Council. The appellant then underwent corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). A resolution plan was approved by the NCLT, which settled the claims of operational creditors at nil. However, the Facilitation Council proceeded with arbitration and passed an award in favor of the respondent. The appellant challenged the execution of the award, arguing that it was a nullity due to the approved resolution plan. The High Court rejected this

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## Facts

Electrosteel Steel Limited (appellant) faced claim petitions from Ispat Carrier Private Limited (respondent) before the West Bengal Micro, Small and Medium Facilitation Council for a principal outstanding amount of Rs. 1,59,09,214.00. These claims were registered as Case No. 330/2014 and Case No. 331/2014. Conciliation proceedings were initiated but failed, leading to arbitration proceedings commencing on 07.06.2017. On 27.06.2017, financial creditors of the appellant invoked Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC), before the National Company Law Tribunal, Kolkata Bench (NCLT). On 21.07.2017, NCLT imposed a moratorium and appointed an interim resolution professional. A resolution plan was submitted by Vedanta Limited on 29.03.2018, wherein claims

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## Issues and analysis

### Issue 1: Whether an arbitral award, not challenged under Section 34 of the Arbitration and Conciliation Act, …

**Ratio:** An objection to the execution of a decree can be raised, but it is limited to the ground

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**Reasoning:** The High Court held that a plea of nullity qua an arbitral award can be raised in a

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**Interpretation:** Section 47 of the CPC allows for objections to the execution of a decree, but

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**Application:** The appellant argued that the arbitral award was a nullity because the

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## Parties

- **Judges:** UJJAL B…; ABHAY S…
- **Respondents:** Electrosteel…; ISPAT CARRIER…
- **Other parties:** Over Tu…

## Timeline

- **2014-12-02 — Claim Petitio…**: Respondent filed claim petitions before the West Bengal Micro, Small and Medium…
- **2017-06-07 — Arbitration C…**: Arbitration proceedings…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 36 — Liquidation estate](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-36)

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