Adjudicating Authority (NCLT) lacks jurisdiction to set aside an Arbitral Award even the award was passed after initiation of CIRP and during in course of moratorium under Section 14 of IBC – Subodh Kumar Agarwal, RP of Hindustan Controls and Equipment Pvt. Ltd. Vs. Steel Authority of India – NCLT Kolkata Bench
Hon’ble NCLT Kolkata Bench held that:
(i) Although NCLT has the power to issue an Ante Arbitration injunction, in light of the Section 430 of the Companies Act, 2013 and also has the power to refer parties to Arbitration or enforce Arbitration Award, it cannot set aside an Arbitral Award.
(ii) The NCLT cannot do what the IBC consciously did not provide the power to do.
(iii) The Tribunal lacks jurisdiction to set aside an Arbitral Award, although it was passed in course of moratorium under Section 14 of IBC, the IA is disposed of with liberty to the RP to initiate appropriate proceedings to challenge the said Award.
