Corporate debtor filed a reply to the financial creditor's ...

NCLAT Rules Section 7 Application Takes Precedence Over Arbitration; Corporate Debtor's Appeal Dismissed.

November 19, 2024

Case Laws IBC AT

Corporate debtor filed a reply to the financial creditor's Section 7 application in December 2023, but moved an application u/s 8 for reference to arbitration only on March 7, 2024. The financial creditor had initiated arbitration proceedings by unilaterally appointing an arbitrator in July 2019, but the arbitrator terminated the proceedings in October 2021, holding the appointment contrary to law. The NCLAT held that if an application u/s 8 is filed, the adjudicating authority must first decide the Section 7 application by recording satisfaction regarding default. The pendency or initiation of arbitration proceedings after filing the Section 7 application is immaterial. Allowing the Section 8 application would defeat the IBC's purpose by asking the adjudicating authority to await arbitration proceedings. The corporate debtor admitted debt and default in one-time settlement offers in 2019 and 2022. The adjudicating authority rightly rejected the Section 8 application, and the NCLAT dismissed the appeal.

View Source

← Previous Next →

Corporate debtor filed a reply to the financial creditor's ...

NCLAT Rules Section 7 Application Takes Precedence Over Arbitration; Corporate Debtor's Appeal Dismissed.

November 19, 2024

Case Laws IBC AT

You may also like:

Admission of section 7 application - financial debt owed by the Corporate Debtor or not - Home Buyers - The application was filed by respondents, who were allottees in a...

This case pertains to the precedence and priority of consideration between an application filed u/s 54(C) and Section 7 of the Insolvency and Bankruptcy Code (IBC)...

Section 7 application filed by the Financial Creditor was erroneously rejected by the Adjudicating Authority despite debt and default by the Corporate Debtor. The...

Sale of assets of Corporate debtors - Validity of order of NCLAT permitting the Private Sale of the composite assets of the Corporate Debtor instead of taking the Second...

The NCLAT dismissed the appeal filed by the corporate debtor against the order admitting the application u/s 7 of the Insolvency and Bankruptcy Code (IBC) filed by the...

Power of Court to entertain an application u/s 9(1) of the Arbitration and Conciliation Act, 1996 - On a combined reading of Section 9 with Section 17 of the Arbitration...

NCLAT dismissed the contempt application against adjudicating authority. It held no contempt was committed in admitting section 7 application against corporate debtor's...

Initiation of CIRP - pre-existing dispute or not - NCLT rejected the application - NCLAT allowed the application admitting the additional evidences - the impugned order...

Reference of disputes arising out of collaboration agreement to arbitration - appointment of an Arbitral Tribunal - the proceedings under the Insolvency and Bankruptcy...

Corporate Debtors failed to deliver housing units to allottees within stipulated time despite receiving payments. NCLAT rejected Corporate Debtors' contentions regarding...

The National Company Law Appellate Tribunal (NCLAT) has remanded the case back to the Adjudicating Authority (AA) to examine and decide the issues in a comprehensive...

CIRP - Admissibility of two additional documents - The Appellate Tribunal analyzed the timing of the documents in question. It noted that the arbitration petition and...

The National Company Law Appellate Tribunal (NCLAT) dismissed the appeal, upholding the order admitting the Section 7 application filed by ICICI Bank against the...

Rejection of application for initiation of CIRP - The mere fact that the Corporate Debtor has admitted liability to make payment in its minutes of meeting does not...

The NCLAT dismissed the application seeking to confine the corporate insolvency resolution process (CIRP) to only the 'Spaze Arrow' project of the corporate debtor. The...

Quick Updates: