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Any dispute even Pending Arbitration does not Prohibit Financial Creditors to avail remedy u/s 7 of IBC: NCLAT

Update / Judgement Date

20 Feb 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

The NCLAT ruled that any dispute, even pending arbitration, does not prohibit financial creditors from availing remedies under Section 7 of the IBC (Insolvency and Bankruptcy Code). This clarifies the rights of financial creditors to initiate insolvency proceedings even if there are ongoing disputes or arbitration.