In Brief
Indus Biotech Private Limited sought appointment of an arbitrator to resolve disputes with investment funds (Kotak entities) over conversion of preferential shares into equity shares, including the applicable conversion formula. When the investment funds initiated insolvency proceedings under the Insolvency Code, Indus Biotech sought arbitration instead. The Supreme Court held that insolvency proceedings become non-arbitrable only upon admission by the Adjudicating Authority, not merely upon filing. Since the debt calculation remained genuinely disputed between the parties and no final default had been established, the Court allowed the arbitration petition and appointed arbitrators to resolve the valuation and conversion formula disputes.
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