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IN THE HIGH COURT OF ORISSA AT CUTTACK
ARINDAM SINHA
Nayagarh Cooperative Sugar Industries Ltd. – Appellant
Versus
Nayagarh Sugar Complex Ltd. – Respondent
| Table of Content |
|---|
| 1. existence of moratorium and counter claims (Para 1 , 4) |
| 2. arguments around maintainability and resolutions (Para 2 , 3) |
| 3. judicial review necessity due to lack of remedy (Para 5) |
| 4. staying reference until moratorium expires (Para 6) |
| 5. disposal of writ petition (Para 7) |
ORDER :
ARINDAM SINHA, J.
1. Mr. Dwibedi, learned advocate appears on behalf of petitioner and submits, his client is respondent in the arbitration reference having made counter claims against the corporate debtor/claimant. He draws attention to order dated 12th December, 2021, whereby there was declaration of moratorium under section 14 of Insolvency and Bankruptcy Code, 2016, in respect of opposite party no.1 (corporate debtor). He submits, prayer in the petition is for quashing order dated 8th July, 2022 passed in the reference, thereby holding that it can be continued with in spite of the declaration.
2. Mr. Nanda, learned senior advocate appears on behalf of opposite party no.1. He submits, the writ petition is not maintainable as judicial intervention is limited by section 5 in Arbitration and Conciliation Act, 1996. Without prejudice, he supports the view expressed in impugned order by reliance
A moratorium under the Insolvency Code restricts arbitration proceedings against a corporate debtor, necessitating judicial review due to absence of provisions in the Arbitration Act for such scenari....
The moratorium under Section 96 of the IB Code applies to all debts, including those of personal guarantors, and prohibits any legal action against them during its operation.
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