Case Law Details
Millennium Education Foundation Vs Educomp Infrastructure And School Management Limited (Delhi High Court)
The Supreme Court has categorically held that the adjudicating authority i.e., NCLT has a duty to advert to the contentions put forth on the application filed under the Insolvency and Bankruptcy Code and to examine the material placed before it and record its satisfaction as to whether there is a default or not.
The Supreme Court has further held that if a petition under the Insolvency and Bankruptcy Code is admitted, upon the adjudicating authority recording its satisfaction then an application under Section 8 of the Arbitration Act would not be maintainable and the application under the Insolvency and Bankruptcy Code has to be decided first and the natural consequence of the same would befall on the application under Section 8 of the Arbitration Act.
In view of the judgment in Indus Biotech Private Ltd.(supra), the proceedings under the Insolvency and Bankruptcy Code would take precedence and any moratorium issued therein would automatically bind the proceedings under the Arbitration Act.
In case the petition filed before the NCLT is admitted and moratorium comes into play, the legal consequences of the same would automatically apply to the proceedings under the Arbitration Act.
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