In a recent ruling, the Madras High Court has set aside the enforcement of a ₹34.5 lakh MSME holding that the claim stood extinguished once the company entered the Corporate Insolvency Resolution Process (CIRP).
The dispute arose when Conveyor Engineering obtained an award of ₹34.5 lakh from the MSME Council and sought to enforce it through execution proceedings.
The company challenged the enforcement, arguing that the award was passed during the moratorium period under Section 14 of the Insolvency and Bankruptcy Code (IBC), and that the resolution plan approved by the National Company Law Tribunal (NCLT) in July 2023 extinguished all claims not included in the plan.
The appellant, Capricon Food…