28/10/2022

Can an insolvency proceeding be initiated against the Corporate Debtor on the grounds of the foreign award? – Trans Sea Transport B.V. Vs. Lords Polymer [India] Pvt. Ltd. – NCLT Kolkata Bench

The Adjudicating Authority dismissed the application filed u/s 9 of IBC referring Hon’ble Supreme Court in Government of India v. Vedanta Limited (2020) ibclaw.in 165 SC, Usha Holdings LCC & v. Francorp Advisors Pvt. Ltd. [2018] ibclaw.in 115 NCLAT and PEC ltd. v. Austbulk Shipping Sdn. Bhd. (2018) ibclaw.in 154 SC and held that it is imperative to mention that for the enforcement of foreign award in India, an enforcement/ execution petition is required to be filed before the Hon’ble High Court, as per the amendment to section 47 by Act 3 of 2016 (which came into force on 23 October, 2015). A proceeding seeking recognition and enforcement of a foreign award has different stages: in the first stage, the Court would decide about the enforceability of the award having regard to the requirements of section 47 and 48 of the Arbitration and Conciliation Act, 1996. Once the enforceability is decided, it would further proceed to take further effective steps for execution of the award.

Can an insolvency proceeding be initiated against the Corporate Debtor on the grounds of the foreign award? – Trans Sea Transport B.V. Vs. Lords Polymer [India] Pvt. Ltd. – NCLT Kolkata Bench Read Post »

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