Whether an arbitration reference is maintainable after admission of Insolvency Resolution petition under Section 7 of Insolvency and Bankruptcy, 2016
In the instant case, the appellant filed a petition under Section 7 of Insolvency and Bankruptcy Code,2016 before the NCLT seeking appointment of Resolution Professional. In the said proceedings, NCLT allowed the respondent's miscellaneous application under Section 8 of the Arbitration Act seeking direction to refer the parties to arbitration and dismissed the petition under Section 7 of Insolvency and Bankruptcy Code, 2016.
The apex court observed that if a petition is admitted by the Adjudicating authority under section 7 of Insolvency and Bankruptcy Code upon satisfaction with regard to default and debt being due from the corporate debtor, then any application seeking reference to arbitration under Section 8 of the Arbitration and Conciliation Act will not be maintainable thereafter
Indus Biotech Private Limited vs. Kotak India Venture (Offshore) Fund and Ors. (26.03.2021 - SC) : MANU/SC/0231/2021
WHETHER THE IBC CAN BE INVOKED IN RESPECT OF AN OPERATIONAL DEBT WHERE AN ARBITRAL AWARD HAS BEEN PASSED AGAINST THE OPERATIONAL DEBTOR, WHICH HAS NOT YET BEEN FINALLY ADJUDICATED UPON?
The court held that the filing of a Section 34 petition against an Arbitral Award shows that a pre-existing dispute which culminates at the first stage of the proceedings in an Award, continues even after the Award, at least till the final adjudicatory process under Sections 34 & 37 has taken place. However, court clarified that there may be cases where a Section 34 petition challenging an Arbitral Award may clearly and unequivocally be barred by limitation, in that it can be demonstrated to the Court that the period of 90 days plus the discretionary period of 30 days has clearly expired, after which either no petition under Section 34 has been filed or a belated petition under Section 34 has been filed. It is only in such clear cases that the insolvency process may then be put into operation
K. Kishan vs. Vijay Nirman Company Pvt. Ltd. (14.08.2018 - SC) : MANU/SC/0872/2018
WHETHER ARBITRATION AWARD DIRECTING TRANSMISSION OF SHARES CAN BE ENFORCED THROUGH NCLT?
The court held that since the award postulates a transmission of share to the Claimant, the directions contained in the award can be enforced only by moving the tribunal for rectification in the manner contemplated by law.
Cheran Properties Limited vs. Kasturi and Sons Limited and Ors. (24.04.2018 - SC) : MANU/SC/0427/2018
Whether Arbitration proceedings can start after the imposition of the moratorium period?
In this case arbitration proceeding has been purported to be started after the imposition of the said moratorium and appeals Under Section 37 of the Arbitration Act are being entertained and further stated that the effect of Section 14(1)(a) is that the arbitration that has been instituted after the aforesaid moratorium is non est in law.
Alchemist Asset Reconstruction Company Ltd. vs. Hotel Gaudavan Pvt. Ltd. and Ors. (23.10.2017 - SC)
whether There Is An 'Existence Of Dispute' Between The Parties, The Award Passed By Arbitral Tribunal Having Affirmed By The Court Under Section 34 Of The Arbitration Act?
Under Section 8(2) (a) Pendency of an arbitration proceedings has been termed to be an 'existence of dispute' and not the Pendency of an application under Section 34 or Section 37 of the Arbitration Act.
M/s. Annapurna Infrastructure Pvt. Ltd. & Anr. Vs. M/s. SORIL Infra Resources Ltd., NCLAT : MANU/NL/0080/2017
