Petition U/S 95 Of IBC Not Maintainable If It Is Filed To Thwart Already Initiated Arbitral Proceedings: NCLAT New Delhi

The NCLAT ruled that arbitral proceedings are subject to an interim moratorium under Section 95 of the Insolvency and Bankruptcy Code (IBC). The tribunal held that once an application for insolvency resolution is admitted, an interim moratorium is automatically imposed, staying all pending legal proceedings, including arbitration. This ruling clarifies the scope of the interim moratorium under the IBC, ensuring that all legal actions are paused to facilitate the insolvency resolution process.