Appointment of Substitute Arbitrator and Effect of Moratorium on Arbitral Proceedings
Arbitration and Conciliation Act, 1996 (Sections 9, 11, 15, 16, 17, 37), Insolvency and Bankruptcy Code, 2016 (Section 14), Constitution of India (Article 142) – The case involved disputes between appellants and a respondent company (now under liquidation) in an SRA project, leading to arbitration. During the arbitral proceedings, the respondent was admitted into Corporate Insolvency Resolution Process (CIRP) under Section 14 of the IBC, imposing a moratorium.
Despite the moratorium, the arbitral tribunal continued proceedings between 17.03.2022 and 25.08.2022, rejecting a Section 16 challenge to its jurisdiction and passing Section 17 interim orders allowing the sale of flats. Subsequently, liquidation proceedings against the respondent began, and the arbitrator terminated the arbitration.