- (1.) (C.A. No. 173 (PB) /2017) This is an application filed under Section 60(5) of the Insolvency & Bankruptcy Code, 2016 (for brevity the 'Code') with a prayer that the jurisdiction assumed by an Arbitrator vide notice dated 25.05.2017 are wholly illegal and unlawful in the face of the order of admission dated 31il March, 2017. Such a course would also be against the express provisions of Section 14(1) (a) of the 'Code', which reads thus: "14(1) Subject to provisions of sub-sections (2) and (3) on the insolvency commencement dote, the Adjudicating Authority shall by order declare moratorium for prohibiting all of the following, namely:- (a) The institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority".
(2.) A perusal of the aforesaid provision shows that on the commencement of the Insolvency, the Adjudicatory Authority is required to declare by order moratorium for prohibiting, inter alia, continuation of pending arbitration proceedings. On 31.02.2017, when (IB) -23(PB) /2017 was admitted, in para-15 a specific order was made granting moratorium in terms of Section 14 of the Code and we had also directed the parties to offer their co-operation to the Interim Resolution Professional. Therefore, the requirement of Section 14(1)(a) stands fulfilled and the order is binding on all stakeholders.
(3.) Moreover, there was no stand taken by the Corporate Debtor with regard to pendency of any arbitration proceedings nor any arbitrator with the name of Mr. Pankaj Garg was ever mentioned. How somebody, who is totally stranger to the insolvency process could assume jurisdiction is a baffling proposition. It is thus declared illegal and unlawful. Further, we restrain holding of any arbitration with regard to the Respondent Company, which is already under the insolvency resolution process with Mr. Aruraaan Sikdar has appointed as an Insolvency Resolution Professional appointed by NCLT vide order dated 31.03.2017. A copy of this order be sent to the respondent for compliance by the Applicant as well as by the Registry.;