Challenge against invoke and encashing Bank Guarantee during Period of moratorium u/s 14 of IBC: Chhattisgarh HC dismisses petition citing pending Arbitration Proceedings

The Chhattisgarh High Court has dismissed a petition challenging the "invoke and encashing of a bank guarantee" during the moratorium period under Section 14 of the IBC, citing "pending arbitration proceedings." The court's ruling clarifies that the moratorium under the Insolvency and Bankruptcy Code (IBC) does not prevent the invocation of a bank guarantee. The court also held that since the matter was already a subject of arbitration, it was not the right forum to adjudicate the issue, thereby upholding the sanctity of a bank guarantee.