# UJAAS ENERGY LTD. vs. WEST BENGAL POWER DEVELOPMENT CORPORATION LTD.

> SC judgment dated 2026-03-20. Citation: TCN-2026-SC-00068. The appellant, Ujaas Energy Ltd., a corporate debtor, challenged a High Court order that set aside…

- **Court:** SC
- **Order date:** 20 Mar 2026
- **Citation:** TCN-2026-SC-00068
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/ujaas-energy-ltd-vs-west-bengal-power-development-corporation-ltd-g31ui

## Summary

### Background

The appellant, Ujaas Energy Ltd., a corporate debtor, challenged a High Court order that set aside a Single Judge's decision. The Single Judge had previously dismissed a challenge to an interim arbitral award. The core dispute revolves around a counterclaim filed by the respondent, West Bengal Power Development Corporation Ltd., in arbitration proceedings. This counterclaim was not filed before the Resolution Professional during the appellant's Corporate Insolvency Resolution Process (CIRP) prior to the approval of the resolution plan.

## Facts

The respondent floated an e-tender on 15th February, 2017, for the manufacture, procurement, installation, etc., of grid-connected rooftop solar PV power plants.

The appellant, an MSME, successfully participated in the bid process and was issued a Letter of Award (LOA) on 12th May, 2017.

On 17th September, 2020, the appellant was admitted into Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016.

Due to disputes regarding contract performance, the appellant, through its resolution professional, invoked the arbitration clause on 31st December, 2021.

The appellant filed a statement of claim on 17th January, 2023, and the respondent filed its statement of defence and a counterclaim on 18th April and 12th May, 2023, respectively.

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## Issues and analysis

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

**Ratio:** A claim not forming part of an approved resolution plan stands extinguished, precluding

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**Reasoning:** The Supreme Court affirmed that under Section 31(1) of the IBC, an approved resolution

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**Interpretation:** The 'clean slate' principle, fundamental to the CIRP, ensures finality and

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**Application:** The respondent is permitted to raise the plea of set-off before the Arbitral

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## Parties

- **Judges:** DIPANKAR DA…; AUGUSTINE GEORGE…
- **Respondents:** UJAAS ENERG…; WEST BENGAL POWER…
- **Other parties:** Committee of…
- **Advocates:** Abhijit…; Jishnu Cho…

## Timeline

- **2017-02-15 — E-tender floated by…**: West Bengal Power Development Corporation Ltd. floated an e-tender for grid-connected…
- **2017-05-12 — Letter of Award (LOA)…**: A Letter of Award was issued in favour of Ujaas Energy Ltd. after its successful…

## 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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