Open Access Research Article
IMPACT OF INSOLVENCY ON ARBITRATION: A CRITICAL REVIEW OF THE LEGAL FRAMEWORK IN INDIA
Abstract
The
relationship between insolvency proceedings and arbitration presents a
significant challenge to commercial dispute resolution in India. Arbitration is
founded on party autonomy, contractual freedom, and the efficient resolution of
private disputes, whereas insolvency law seeks to maximise the value of a
financially distressed debtor's assets, protect creditors collectively, and
facilitate corporate resolution or liquidation. These objectives may conflict
when arbitration proceedings are pending against a corporate debtor, an
arbitral award is challenged or remains unpaid, or a creditor invokes
insolvency proceedings despite an existing arbitration agreement. This paper
critically examines the interaction between the Insolvency and Bankruptcy Code,
2016 (IBC), and the Arbitration and Conciliation Act, 1996. It analyses the
statutory framework, particularly Sections 14, 33, 60(5), and 238 of the IBC,
alongside Sections 8, 11, 16, 34, and 36 of the Arbitration Act. Important
judicial decisions, including Indus Biotech Private Limited v. Kotak India
Venture (Offshore) Fund, K. Kishan v. Vijay Nirman Company Private Limited, P.
Mohanraj v. Shah Brothers Ispat Private Limited, and Gujarat Urja Vikas Nigam
Limited v. Amit Gupta, are critically evaluated. The paper identifies
uncertainties concerning moratoriums, arbitrability, creditor claims,
jurisdictional boundaries, and enforcement of arbitral awards. It recommends
clearer statutory guidance, coordinated judicial approaches, and procedural
safeguards to balance arbitration autonomy with the collective objectives of
insolvency law.
Published Paper
Author Details
Authors: DR. BANDARU MANASARegistration ID: 1013486 | Published Paper ID: IJLRA13486Approved ISSN: 2582-6433 | Country: Delhi, IndiaPage No.: 2739-2757
Article Information
IMPACT OF INSOLVENCY ON ARBITRATION: A CRITICAL REVIEW OF THE LEGAL FRAMEWORK IN INDIA
Authors: DR. BANDARU MANASA
- Journal IJLRA
- ISSN 2582-6433
- Volume 3
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- AbbreviationIJLRA
- ISSN2582-6433
- AccessOpen Access
- LicenseCC 4.0
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