Delhi HC: Pending Reference Under SICA, Proceedings Before The Arbitral Tribunal Not To Be Stayed

Introduction

Recently, the hon'ble High Court of Delhi in Appeals no. 41, 42, and 43 of 2015 of Goyal MG Gases Pvt. Ltd v. SBQ Steels Ltd held that arbitration proceedings will not be stayed due to reference pending before the Board for Industrial & Financial Reconstruction (BIFR) under the provisions of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). Under the appeals, the order of the Arbitral Tribunal was challenged wherein the Arbitral Tribunal has suspended the arbitral proceedings in view of the on the ground that the same are hit by Section 22(1) of the Sick Industrial Companies Act, 1985 as reference was pending before the BIFR.

Provisions of Section 22(1) in SICA reads as under: