In Brief
The Supreme Court examined whether arbitration proceedings and appeals under the Arbitration Act could proceed against a Corporate Debtor after an insolvency petition was admitted under the Insolvency and Bankruptcy Code, 2016. The Court held that the moratorium under Section 14(1)(a) of the Code expressly prohibits the institution or continuation of any proceedings against the Corporate Debtor, rendering arbitration proceedings commenced thereafter void. The Court set aside the District Judge's order entertaining the First Appeal and quashed accompanying criminal proceedings designed to obstruct the Insolvency Code proceedings. The Court allowed the appeal, directing that Insolvency Code steps continue unimpeded.
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