# In the matter of Ujaas Energy Ltd. vs. West Bengal Power Development Corporation Ltd.

> SC judgment dated 2026-03-20. Citation: TCN-2026-SC-00015. The appeal arises from a judgment of the High Court at Calcutta, which overturned a Single Judge's…

- **Court:** SC
- **Order date:** 20 Mar 2026
- **Citation:** TCN-2026-SC-00015
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/ujaas-energy-ltd-vs-west-bengal-power-development-corporation-ltd-9459aeea

## Summary

### Background

The appeal arises from a judgment of the High Court at Calcutta, which overturned a Single Judge's decision regarding an interim arbitral award. The core issue revolves around a counterclaim raised by the respondent in arbitration proceedings, which was not presented during the Corporate Insolvency Resolution Process (CIRP) of the appellant.

## Facts

Respondent floated an e-tender on 15th February, 2017.

Appellant was admitted into Corporate Insolvency Resolution Process on 17th September, 2020.

Appellant invoked the arbitration clause vide a notice dated 31st December, 2021.

National Company Law Tribunal, Indore accepted the resolution plan on 13th October, 2023.

Appellant filed an application under Section 16 of the Arbitration and Conciliation Act, 1996.

The Tribunal rejected the counterclaim vide an interim arbitral award on 30th April, 2024.

A Single Judge of the High Court dismissed the challenge to the interim award on 21st August, 2024.

The Division Bench of the High Court directed the Tribunal to continue the arbitral proceedings.

## Issues and analysis

### Issue 1: Whether the respondent ought to be allowed to raise the plea of set-off before the Tribunal, having …

**Ratio:** The court held that the respondent could raise the plea of set-off as a defense, but not

…

**Reasoning:** The court reasoned that the resolution plan did not expressly bar the plea of set-off as

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**Interpretation:** The court interpreted Section 31(1) of the IBC and the terms of the resolution

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**Application:** The court applied the principle that the resolution plan is binding but allowed

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## Parties

- **Judges:** DIPANKAR…; AUGUSTINE GEORGE…
- **Respondents:** UJAAS ENERG…; WEST BENGAL POWER…
- **Advocates:** Abhijit…; Jishnu Cho…

## Timeline

- **2017-02-15 — E-tender…**: Respondent floated an…
- **2020-09-17 — CIRP Admi…**: Appellant was admitted into…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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