Delhi High Court Orders Refund of Court Deposit After Claim Extinguished Under IBC Resolution Plan

Case Snapshot

• Case Name: McNally Bharat Engineering Company Limited v. Metso India Pvt. Ltd.

• Citation: O.M.P. (COMM) 362/2018

• High Court: High Court of Delhi

• Bench: Hon'ble Mr. Justice Avneesh Jhingan

• Date of Judgment: 3rd August, 2026

• Area of Law: Arbitration, Insolvency and Bankruptcy Code, Section 34 Petition

Judgment Headline

Court orders refund of deposited amount as arbitral claim extinguished under IBC resolution plan.

The Judgment in One Line

Delhi High Court dismissed Section 34 petition as infructuous and directed refund of deposited amount to corporate debtor whose claim was extinguished under approved resolution plan.

Why This Judgment Matters

This judgment clarifies the interplay between arbitration proceedings and the Insolvency and Bankruptcy Code. It establishes that amounts deposited in court by a corporate debtor as security for an arbitral award remain the asset of the corporate debtor and do not constitute payment to the decree-holder. Crucially, once a resolution p

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