Can a creditor go to NCLT for insolvency if there’s already an arbitration clause in the agreement? This paper breaks down a question that businesses often face but few anticipate: what happens when dispute resolution clauses clash with debt recovery needs?
In simple terms, it looks at how NCLTs, High Courts and Supreme Court, especially under the Insolvency and Bankruptcy Code (IBC), 2016, have dealt with cases where one party wants to arbitrate while the other files for insolvency. The paper explains how courts are now giving more weight to insolvency petitions, even if arbitration was agreed upon—something that can surprise many contract parties. It also compares how other countries like the US, UK, and Hong Kong approach this issue, offering a wider perspective.
Whether you’re a creditor seeking recovery or a business facing financial stress, this article will help you understand how legal strategy around arbitration and insolvency plays out. It gives clarity on when arbitration can be sidelined and why timing matters.
If you’ve ever signed a contract with an arbitration clause or are dealing with debt recovery concerns, this is a must-read.
Click this link to explore the full article and see how the law could impact your rights and remedies.
