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Informative

Application u/s 9 of IBC Based on Arbitral Award Cannot be Admittted After 3 Yrs from Date of Award: NCLT

Update / Judgement Date

10 Apr 2025

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Insolvency & Bankruptcy Code

The NCLT (National Company Law Tribunal) ruled that an application under Section 7 of the IBC (Insolvency and Bankruptcy Code) based on an arbitral award cannot be admitted if filed several years after the date of the award. The tribunal highlighted the importance of adhering to the timelines for initiating insolvency proceedings based on arbitral decrees. Undue delay in approaching the NCLT after obtaining an arbitral award can be a ground for rejecting the insolvency application.