Whether a foreign award is sufficient to initiate insolvency proceedings against the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016 – Jaldhi Overseas Pte. Ltd. Vs. Steer overseas Pvt. Ltd. – NCLT Cuttack Bench
The question involved in this case is whether a foreign award is sufficient to initiate insolvency proceedings against the Corporate Debtor under the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority referred Government of India vs. Vedanta Limited 2020 SCC online SC 749 judgment and held that the foreign award in not a decree in itself. A foreign award cannot directly constitute debt to initiate proceedings against Corporate Debtor under IBC. The mere production of foreign award is not enough to give an effect. Part II Chapter I of Arbitration and Conciliation Act 1996 deals with enforcement of foreign awards in India. As per per explanation to Section 47, ‘the court’ mentioned therein denotes only High Courts.