2022 (1) TMI 1391 - AT - Insolvency and Bankruptcy

Seeking acceptance of claim - already an Arbitration Proceedings going on with regard to claim of the Appellant qua the Corporate Debtor - HELD THAT - There is no ground to entertain this appeal challenging the order of the Adjudicating Authority . It is observed that if the arbitration proceedings result in any award in favour of the Appellant, it shall be open to the Appellant to take such remedy as permissible under the law and impugned order shall not be come in his way in execution of the Arbitral Award. The appeal is dismissed.

Summary

Issues: Appeal against order of Adjudicating Authority regarding acceptance of claim in insolvency proceedings; consideration of ongoing arbitration proceedings in relation to the claim.

In this judgment by the National Company Law Appellate Tribunal, the Appellant had filed an appeal against the order of the Adjudicating Authority dated 28.10.2021, which was related to IA No. 3534/2021 filed by the Appellant seeking acceptance of their claim in insolvency proceedings. The Appellant contended that there were ongoing 'Arbitration Proceedings' concerning their claim against the 'Corporate Debtor,' and argued that the Adjudicating Authority did not give due consideration to these arbitration proceedings. The Appellate Tribunal noted the Appellant's concern that the rejection of their claim could adversely impact their rights if the arbitration proceedings resulted in an award in their favor. However, the Tribunal held that there was no valid ground to entertain the appeal challenging the Adjudicating Authority's order.

The Appellate Tribunal emphasized that if the arbitration proceedings led to an award favoring the Appellant, they would have the opportunity to seek appropriate remedies under the law. The Tribunal clarified that the impugned order would not obstruct the Appellant from enforcing any Arbitral Award that may be granted in their favor. Ultimately, the Tribunal dismissed the appeal, providing assurance to the Appellant that they could pursue legal remedies based on the outcome of the arbitration proceedings without hindrance from the impugned order of the Adjudicating Authority.