Delhi High Court Appoints Sole Arbitrator In Gas Supply Dispute, Invalidates Previous Arbitration Clause In View Of CORE Judgment

The NCLAT ruled that Section 43 of the Insolvency and Bankruptcy Code (IBC) cannot be attracted if no transaction was made by the corporate debtor. The case involved a dispute over the applicability of Section 43, which deals with preferential transactions during the insolvency process. The tribunal held that since no transaction had been made, the provisions of Section 43 did not apply. This decision clarifies the scope of Section 43 and reinforces the importance of ensuring that actual transactions are in place before invoking its provisions.