{"id":4109,"date":"2026-01-12T01:19:27","date_gmt":"2026-01-12T01:19:27","guid":{"rendered":"https:\/\/bhatiabhola.com\/?p=4109"},"modified":"2026-01-12T01:24:29","modified_gmt":"2026-01-12T01:24:29","slug":"ibbi-sc-judgement-dated-06-01-2025-resolution-plan-does-not-extinguish-third-party-rights-unless-debt-paid","status":"publish","type":"post","link":"https:\/\/bhatiabhola.com\/index.php\/blog\/2026\/01\/12\/ibbi-sc-judgement-dated-06-01-2025-resolution-plan-does-not-extinguish-third-party-rights-unless-debt-paid\/","title":{"rendered":"IBBI, SC Judgement Dated 06\/01\/2026 &#8211; Resolution Plan does not extinguish third-party rights unless Debt Paid\u00a0"},"content":{"rendered":"\n<p><em>Case of UV Asset Reconstruction Company Ltd vs Electrosteel Castings Limited, SC Judgement Dated 6<sup>th<\/sup>\u00a0January 2026.<\/em>\u00a0The apex court\u00a0held that Clause 2.2 of the Deed of Undertaking did not constitute a guarantee under Section 126 of the Indian Contract Act, as it only obliged ECL to arrange funds for compliance with financial covenants, not to discharge ESL\u2019s debt. It also ruled that approval of ESL\u2019s resolution plan did not extinguish debt against third-party security providers like ECL, as the plan explicitly preserved creditors rights against them.<\/p>\n\n\n\n<p><a href=\"https:\/\/drive.google.com\/file\/d\/1IE4afUjRzmUPRZvdNUflI3MWn3Fr8CWA\/view?usp=sharing\"><em>(Link: SC Judgement Dated 06\/01\/2026)<\/em><\/a><em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Case of UV Asset Reconstruction Company Ltd vs Electrosteel Castings Limited, SC Judgement Dated 6th\u00a0January 2026.\u00a0The apex court\u00a0held that Clause [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2}},"categories":[66,69],"tags":[],"class_list":["post-4109","post","type-post","status-publish","format-standard","hentry","category-ibbi","category-judiciary-ibbi"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>IBBI, SC Judgement Dated 06\/01\/2026 - Resolution Plan does not extinguish third-party rights unless Debt Paid\u00a0 - Bhatia Bhola &amp; 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