Between The Lines - April 2023

KEY HIGHLIGHTS

• Bombay High Court: Arbitration clause can be invoked by assignee of rights under contract.
• NCLT: Dissenting secured creditor cannot be treated higher than other creditors under Section 53 of the IBC just because they enjoy security interest.
• Bombay High Court: "One-ness of interest"- the touch-stone for defendant to be transposed as plaintiff in case of part abandonment of suit claim.

I. Bombay High Court: Arbitration clause can be invoked by assignee of rights under contract.

The High Court of Bombay ("High Court"), by a judgment pronounced on March 1, 2023, in the matter of Siemens Factoring Private Limited v. Future Enterprises Private Limited [Commercial Arbitration Application No. 174 of 2022] has held that assignee, having stepped into the shoes of the assignor, can invoke arbitration clause in terms of the Arbitration and Conciliation Act, 1996 ("Arbitration Act").