Pending Arbitration Challenge Bars IBC Proceedings for Operational Debt: SC

K. Kishan Vs Vijay Nirman Company Pvt. Ltd. (Supreme Court of India) Whether IBC Can Be Invoked Where Arbitral Award Has Passed? Summary: In K. Kishan v. Vijay Nirman Company Pvt. Ltd., the Supreme Court addressed whether the Insolvency and Bankruptcy Code, 2016 (IBC) can be invoked to recover an operational debt based on an arbitral award under challenge. The dispute arose from a sub-contract for highway construction work, which led to arbitration. The arbitral tribunal awarded Vijay Nirman approximately ₹15.28 crore, including ₹1.71 crore for interim payment certificates. The corporate d...