Calcutta High Court
Calcutta High Court
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Insolvency proceedings cannot be used to defeat a claim existing prior to the initiation of insolvency proceedings, Calcutta HC

Kunal Dey

A Single Bench of the Calcutta High Court comprising Justice Moushumi Bhattacharya recently held that the corporate insolvency resolution procedure enumerated under the Insolvency and Bankruptcy Code, 2016 (IBC) cannot be used as a tool to curtail any claim which arose prior to the commencement of the insolvency proceedings.

The ruling was passed while dealing with the question of whether an application under Section 34 of Arbitration and Conciliation Act (Arbitration Act) should be kept in abeyance when the operational creditors have already initiated corporate insolvency proceedings under the IBC.

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