01.07.2025 Item No.2 Court No.01 S.Bag(AR(CR)

In the High Court at Calcutta Circuit Bench at Jalpaiguri CO/98/2023 MJB AGRI VENTURES PVT. LTD. AND ANR VS DARJEELING ORGANIC TEA ESTATES PVT. LTD. AND ORS Mr. Subham Ghosh, Adv.

Mr. Mayank Roy, Adv.

…for the petitioner This is an application under section 11 of the Arbitration and Conciliation Act, 1996.

Briefly, the disputes between the parties arise out of an agreement for sale of land dated

30 April, 2022.

Clause 22 of the said agreement is as follows:

“22. All disputes and differences that may arise between the Parties hereto with regard to any terms and conditions herein in this Agreement of Sale or in the interpretation thereof shall be referred to a sole arbitrator as mutually agreed upon by the parties and the arbitration proceedings shall be conducted in accordance with the provisions of the Arbitration and Conciliation Act, 1996 as amended from time to time. The seat and venue of arbitration shall be Kolkata, and all proceedings of the arbitration shall be in the English language.”

The respondents remain unrepresented.

The matter has been pending since August, 2023 and has been repeatedly adjourned.

It is contended on behalf of the petitioner that during the pendency the proceeding the respondent is involved in a corporate insolvency resolution process under the provisions of the Insolvency and Bankruptcy Code, 2016. Despite the moratorium under section 14 of the Code, the applicant prays that this application be adjourned sine die. In this connection section 14 of the Code, inter alia, provided as follows:

“14. Moratorium.—(1) Subject to provisions of sub-

sections (2) and (3), on the insolvency commencement date, 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;

(b) transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein;

(c) any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (54 of

2002);

(d) the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor.

[Explanation.—For the purposes of this sub-

section, it is hereby clarified that notwithstanding anything contained in any other law for the time being in force, a license, permit, registration, quota, concession, clearances or a similar grant or right given by the Central Government, State Government, local authority, sectoral regulator or any other authority constituted under any other law for the time being in force, shall not be suspended or terminated on the grounds of insolvency, subject to the condition that there is no default in payment of current dues arising for the use or continuation of the license, permit, registration, quota, concession, clearances or a similar grant or right during the moratorium period;]

(2) The supply of essential goods or services to the corporate debtor as may be specified shall not be terminated or suspended or interrupted during moratorium period.

[(2A) Where the interim resolution professional or resolution professional, as the case may be, considers the supply of goods or services critical to protect and preserve the value of the corporate debtor and manage the operations of such corporate debtor as a going concern, then the supply of such goods or services shall not be terminated, suspended or interrupted during the period of moratorium, except where such corporate debtor has not paid dues arising from such supply during the moratorium period or in such circ