Case Note On: Achenbach Buschhutten Cmbh & Co V. Arcotech Ltd Analyzing Betwixt The Insolvency Code And Arbitration Act

The Honorable National Company Law Appellate Tribunal on July 31, 2017²⁶ ruled that mere clause of arbitration in an agreement cannot be termed to be an existence of dispute, the dispute under Section 9(5) of the Insolvency and Bankruptcy Code, 2016 hereinafter referred as "code" can be acceded only when arbitration is pending before the Arbitral Tribunal.

BACKGROUND

Achenbach Buschhutten GmbH & Co, the operational creditor hereinafter referred as "ABG" filed an application before Hon'ble NCLT, Chandigarh under Section 8 of the code against Arotectch Limited, the corporate debtor hereinafter referred as "AL" for a debt amounting to Rs. 31,41,13,436. It was noticed by Hon'ble NCLT that ABG filed statement validating debt from Landesbank Baden-Wurttemberg hereinafter refereed as "LBW", a German financial institution as the company was incorporated in Germany but no affidavit from the authorized petitioner of the representative was filed in support even after the 7