Century Aluminium Company Ltd. v. Religare Finvest Ltd.

Can a Corporate Debtor file an application under Section 8 of the Arbitration and Conciliation Act, 1996, after filing a reply to an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC)? – Century Aluminium Company Ltd. Vs. Religare Finvest Ltd. – NCLAT New Delhi

Hon’ble NCLAT held that:

(i) Right to move Section 8 Application was forfeited since Corporate Debtor did not choose to file the Application.
(ii) Whether Arbitration Proceedings are pending on the date when Section 7 Application is filed or it is sought to be initiated subsequent to filing of Section 7 Application is immaterial.
(iii) By not filing of Application under Section 8 at the time of filing of a Reply to Section 7, Corporate Debtor has forfeited his right to file his Application under Section 8.
(iv) Arbitration Proceeding which were initiated by Financial Creditor are still pending, that neither preclude the Financial Creditor from filing a Section 7 Application nor preclude the Adjudicating Authority to proceed to consider the debt and default in Section 7 Application.

Can a Corporate Debtor file an application under Section 8 of the Arbitration and Conciliation Act, 1996, after filing a reply to an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC)? – Century Aluminium Company Ltd. Vs. Religare Finvest Ltd. – NCLAT New Delhi Read Post »

Whether commencement of arbitration proceeding prior to filing of CIRP application will negate the proceedings under Section 7 of IBC – Century Aluminium Company Ltd. Vs. Religare Finvest Ltd. – NCLT Kolkata Bench

In this judgment, Hon’ble Bench of NCLT, Kolkata Bench, comprising of Ms. Bidisha Banerjee (Judicial Member) and Shri Arvind Devanathan (Technical Member) held that:

(i) It does not matter whether the arbitration proceedings commenced before or after filing of petition under Section 7 of IBC.
(ii) “default” per se is not arbitrable. Things like quantum of debt, rate of interest, various charges, period of debt, restructuring proposal, service levels of the respondent, penal interest levied etc. are arbitrable not the default per se or insolvency of the Applicant which can be adjudicated by this Tribunal.
(iii) Initiation of arbitration by Corporate Debtor is malafide act to prolong CIRP.

Whether commencement of arbitration proceeding prior to filing of CIRP application will negate the proceedings under Section 7 of IBC – Century Aluminium Company Ltd. Vs. Religare Finvest Ltd. – NCLT Kolkata Bench Read Post »

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