The National Company LawAppellate Tribunal (NCLAT) New Delhi Bench has upheld the admission of insolvency application under Section 7 of Insolvency and Bankruptcy Code 2016 filed by Canara Bank holding that the mere pendency of an arbitral award in favour of the Corporate Debtor (CD) cannot be a ground to suspend the CorporateInsolvency Resolution Process (CIRP).
The Corporate Debtor Supreme Best Value Kolhapur (Shiroli) Sangli Tollways Pvt. Ltd. is a special purpose vehicle which was set up to carry out a road construction project in the state of Maharashtra. The company had received funds as finance from a consortium of banks, including Canara Bank, which amounted to a total of ₹85.80 crore.
However, the…