State-run BHEL, which was also a secured creditor for Surana Power, had won an arbitration award against Surana Power.
The National Company Law Appellate Tribunal (NCLAT) has ruled that liquidation process of a company under the Insolvency and Bankruptcy Code (IBC) holds precedence over outcome of an arbitration proceeding.
A three-member Bench, headed by Justice Venugopal M, ruled that just because Bharat Heavy Electricals Limited had won an arbitration award against Surana Power, which was undergoing liquidation, the process would not be stopped to favour it. The Chennai Bench of National Company Law Tribunal (NCLT) had earlier ruled in favour of BHE…
Read the full article at: https://indianexpress.com/article/explained/what-does-recent-nclat-ruling-liquidation-of-a-firm-under-ibc-holds-precedence-mean-6468623/
