An arbitration proceedings and insolvency proceedings cannot go on together – M/s. KK Ropeways Ltd. Vs. M/s. Billion Smiles Hospitality Pvt. Ltd. – NCLAT Chennai
NCLAT held that a dispute in existence means and includes raising a dispute before a Court of law or an Arbitral Tribunal, before receipt of Notice under Section 8 of the IBC, 2016. Further, dispute continues at stage where challenge to an Arbitral Award in an appeal is projected by a party, as opined by this Tribunal. So long as a dispute truly exists in fact and it is not spurious or an imaginary and not a hypothetical one an Adjudicating Authority/Tribunal is to reject the Petition / Application filed under the I & B Code, 2016. It is to be remembered, that an Arbitration Proceedings and I & B Code Proceedings cannot go on together in the considered opinion of this Tribunal.