The Kochi bench of the tribunal held the petition to be an attempt to use IBC as a recovery mechanism after already pursuing arbitration, appellate remedies, and execution.
“Considering the facts and circumstances of the present case, this Adjudicating Authority (NCLT) is of the view that the present proceedings are essentially an attempt to recover the balance amount claimed under the Award after having pursued arbitration, appellate proceedings and execution remedies for several years.
Such use of the insolvency process is not in consonance with the object and scheme of the Code,” said NCLT in a July 7 order.