The National Company Law Tribunal (NCLT) Mumbai Bench has held that the presence of an arbitration clause does not preclude insolvency proceedings once debt and default are established. Also found that the corporate debtor had defaulted on repayment of an inter‑corporate deposit of ₹2.9 crore and admitted a section 7 insolvency plea.
The application, filed on 14 November 2025, sought initiation of the Corporate Insolvency Resolution Process (CIRP) after the corporate debtor failed to repay the loan by the agreed date of 20 June 2025. The default was recorded on 21 June 2025, the day following the expiry of the repayment period.
The financial debtor, Golden Medows Export, produced the…