The Supreme Court has held that the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 (IBC) does not necessarily prevent a corporate debtor from pursuing arbitration proceedings to recover its own dues.
A Bench of Justice Ujjal Bhuyan and Justice Atul S. Chandurkar observed that a successful arbitral claim could strengthen the corporate debtor’s financial position and enhance its value, furthering the purpose of the insolvency process. A party which consented to a sole arbitrator and participated in the proceedings cannot belatedly insist on a three-member tribunal prescribed by the agreement.
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The bench upheld the findings on waiver of objections to…