NCLT Can't Refer To Arbitration U/S 8 Of The A&C Act While Exercising Powers U/S 7, 9 And 10 Of The IBC: NCLAT Principal Bench
2 years, 3 months ago

NCLT Can't Refer To Arbitration U/S 8 Of The A&C Act While Exercising Powers U/S 7, 9 And 10 Of The IBC: NCLAT Principal Bench

Live Law  

The NCLAT Principal Bench comprising of Justice Anant Bijay Singh, Judicial Member and Ms. Shreesha Merla, Technical Member in the matter of Trafigura India Pvt. Ltd. V. TDT Copper Ltd. upheld the order passed by the Adjudicating Authority which upheld the order of the AA, dismissing Appellant's S. 9 Application under IBC on the ground that unpaid amounts in the Settlement Agreement do not constitute 'operational debt' u/s 5 of the IBC and that the role of the NCLT is limited while exercising its powers u/s 7, 9 and 10 of the Code and thus cannot refer the matter to arbitration u/s 8 of the Arbitration and Conciliation Act. The Adjudicating Authority dismissed the Section 9 application filed by the Appellant on the grounds that- -Unpaid amounts under a Settlement Agreement do not constitute an 'operational debt' u/s 5 of the IBC. -The NCLT has a limited power u/s 7, 9 and 10 of the IBC and cannot refer the matter to Arbitration u/s 8 of the Arbitration and Conciliation Act. The Appellate Tribunal also upheld the finding of the AA that the role of the NCLT u/s 7, 9 and 10 of the IBC is very limited and that the AA cannot refer the matter to Arbitration u/s 8 of the Arbitration and Conciliation Act, 1996 and dismissed the appeal filed by the Appellant.

Arbitration Debt Respondent Nclt Appellant Ibc Settlement Agreement Msa Nclat Principal  nclt  nclat  principal  cant  respondent  settlement  agreement  upheld  refer  operational  exercising  arbitration  powers  ibc  bench  supply  appellant  debt

History of this topic

S.9 Application Not Appropriate For Relief Against Non-Signatory When There Is No Dispute Between Parties To Be Referred To Arbitration: Bombay HC
1 month, 2 weeks ago

S.9 Application Not Appropriate For Relief Against Non-Signatory When There Is No Dispute Between Parties To Be Referred To Arbitration: Bombay HC

Live Law  

The Bombay High Court bench of Justice Arif S. Doctor has held that Section 9 of the A&C Act is not the correct mechanism to obtain relief against an entity when the privity of contract is absent between Factual Overview: The dispute arose regarding a Redevelopment Agreement and a Supplementary Agreement dated 20 July 2022. R-2 not being a member …

NCLT Hyderabad: Airport Authority Of India Being A Statutory Body Does Not Fall Within Scope Of 'Corporate Person' U/S 3(7) Of IBC
1 year, 1 month ago

NCLT Hyderabad: Airport Authority Of India Being A Statutory Body Does Not Fall Within Scope Of 'Corporate Person' U/S 3(7) Of IBC

Live Law  

The National Company Law Tribunal, Hyderabad Bench, comprising of Smt. Bidisha Banerjee and Shri Arvind Devanathan has held that no proceedings can be initiated against the Airport Authority of India as it is a statutory body created under the Airport Authority of India Act, 1944, does not fall under the definition of 'corporate person' under Section 3 of Insolvency and …

Weekly Digest Of IBC Cases: 11th To 17th September 2023
1 year, 3 months ago

Weekly Digest Of IBC Cases: 11th To 17th September 2023

Live Law  

Supreme Court Case Title: Tata Power Western Odisha Distribution Limited & Anr. V Jagannath Sponge Private Limited Citation: 2023 LiveLaw 788 The Supreme Court has held that under the Insolvency and Bankruptcy Code, 2016, once the Resolution Plan stands approved by the National Company Law Tribunal, the Electricity Department cannot demand payment of arrears, which were payable by the Corporate …

Weekly Digest Of IBC Cases: 18 To 23 July 2023
1 year, 5 months ago

Weekly Digest Of IBC Cases: 18 To 23 July 2023

Live Law  

Supreme Court Case Title: Paschimanchal Vidyut Vitran Nigam Ltd vs Raman Ispat Private Limited Citation: 2023 LiveLaw 534 | 2023 INSC 625 The Supreme Court Bench comprising of Justices S. Ravindra Bhat and Dipankar Datta, has observed that Section 238 of the Insolvency and Bankruptcy Code, 2016 overrides the provisions of the Electricity Act, 2003. High Court Jharkhand High Court …

Weekly Digest Of IBC Cases: 13 February To 19 February 2023
1 year, 10 months ago

Weekly Digest Of IBC Cases: 13 February To 19 February 2023

Live Law  

NCLAT Partial Payment Of PF & Gratuity Dues Violative Of Section 30 Of IBC: NCLAT Chennai Reiterates Case Title: Mrs. C.G. 924 of 2022 The National Company Law Appellate Tribunal, Principal Bench, comprising of Justice Ashok Bhushan and Mr. Barun Mitra, has held that an application under Section 9 of IBC is not a suit and hence, the bar under …

Invoking CIRP Would Not Make The Dispute Non-Arbitrable : Delhi High Court
2 years ago

Invoking CIRP Would Not Make The Dispute Non-Arbitrable : Delhi High Court

Live Law  

The High Court of Delhi has held that the dispute would not become non-arbitrable merely because the petitioner, before filing the application for appointment of arbitrator, has filed a corporate insolvency application under Section 9 of the IBC. The Court held that when the respondent has constantly denied its liability to pay, the claimed amount does not transfer into an …

NCLT Cannot Coerce Allottees Into Settlements
2 years, 5 months ago

NCLT Cannot Coerce Allottees Into Settlements

Live Law  

The jurisdiction of the National Company Law Tribunal and the National Company Law Appellate Tribunal and the courses of action available to these authorities under Section 7 of the Insolvency and Bankruptcy Code, 2016 has been defined and limited by the Hon'ble Supreme Court through its recent judgment in E. S. Krishnamurthy & Others v. Bharath Hi Tech Builders Pvt. …

IBC Cases Weekly Round Up: July 10 To 17 July, 2022
2 years, 5 months ago

IBC Cases Weekly Round Up: July 10 To 17 July, 2022

Live Law  

Supreme Court Case Title: Vidarbha Industries Power Ltd. vs Axis Bank Limited Case No. The National Company Law Tribunal, Mumbai Bench, comprising of Shri H. V. Subba Rao Shri Chandra Bhan Singh, has directed the Resolution Professional to file a fresh a report under Section 99 of the Insolvency and Bankruptcy Code, 2016 for recommending approval or rejection of insolvency …

Arbitration Reference Not Maintainable If Filed After Admission Of Insolvency Resolution Petition U/s 7 IBC: Supreme Court
3 years, 9 months ago

Arbitration Reference Not Maintainable If Filed After Admission Of Insolvency Resolution Petition U/s 7 IBC: Supreme Court

Live Law  

The Supreme Court observed that in any proceeding which is pending before the Adjudicating Authority under Section 7 of Insolvency and Bankruptcy Code, if such petition is admitted upon the Adjudicating Authority recording the satisfaction with regard to the default and the debt being due from the corporate debtor, any application seeking reference to arbitration. The Supreme Court observed that …

Discover Related