Arbitration Clause Cannot Block Insolvency Proceedings Once Default Is Proven: NCLT Mumbai

Golden Medows Export Private Limited Vs PS IT Infrastructure & Services Limited (NCLT Mumbai) The National Company Law Tribunal (NCLT), Mumbai Bench admitted a Section 7 application filed by Golden Medows Export Private Limited against PS IT Infrastructure & Services Limited for initiation of Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). The financial creditor claimed a total default of Rs. 3,10,02,122 as on 30.09.2025, comprising principal outstanding of Rs. 2.90 crore and interest of Rs. 20,02,122 at 9% per annum. According to th...