Provisions u/s 22 of SICA not applicable to arbitration proceedings

Relevant Extracts : The First Respondent had filed a claim petition against the Petitioners before the arbitrator seeking a sum of over Rs.57 lakhs stated to be due under a hire-purchase agreement. The Petitioners raised a specific plea before the arbitrator that the claim petition was not maintainable as the first Petitioner had been declared a sick industrial company by the BIFR and that section 22 of SICA placed an embargo on the continuation of the arbitral proceedings against them. The arbitrator dismissed the petition holding that section 22 of SICA is inapplicable to the proceedings ini...