In a significant reaffirmation of the interplay between the Insolvency and Bankruptcy Code, 2016 (IBC) and the Arbitration and Conciliation Act, 1996, the Supreme Court, by a Bench comprising Justice J.K. Maheshwari and Justice Vijay Bishnoi, has dismissed the Special Leave Petition (SLP) challenging the order of the Delhi High Court, thereby upholding the view that a company undergoing Corporate Insolvency Resolution Process (CIRP) cannot maintain a petition under Section 34 of the Arbitration Act during the pendency of the moratorium.

The Delhi High Court, by order dated 04 July 2025, had held that the Section 34 petition filed by Ansal Properties and Infrastructure Limited seeking to set aside an arbitral award dated 23 February 2025 (passed in favour of Vistra ITCL (India) Limited for claims amounting to approximately ₹643 crore) was not maintainable as the petitioner was under CIRP and therefore protected by the statutory moratorium under Section 14 of the IBC.

Appearances:

For the Petitioner : Mr. Vikas Goel, Advocate, Singhania & Partners)

For the Respondent : Mr. Sidhant Kumar and Ms. Anushka Shah, Unum Law