The arbitration application was also not relevant for IBC Section 9 proceedings, since, the arbitration application was filed by Corporate Debtor much after the initiation of proceedings under Section 9 – Balasore Alloys Ltd. Vs. MSTC Ltd. – NCLAT New Delhi
Hon’ble NCLAT held that:
(i) The observation of the Hon’ble Supreme Court in order dated 28.11.2023 as noted above, clearly indicate that arbitration order passed in the arbitration proceedings shall not affect proceedings in Section 9 Application under the Code, which was filed by the Operational Creditor.
(ii) The arbitration application, on which order dated 13.09.2023 was passed, was also not relevant for Section 9 proceedings, since, the arbitration application was filed by Corporate Debtor before the High Court on 31.08.2023, i.e., much after the initiation of proceedings under Section 9.