Moratorium Applicable On Proceeding U/S 34 Of The Arbitration & Conciliation Act, 1996

In the recent judgment delivered by the Hon'ble Delhi High Court in the case of Power Grid Corporation of India Ltd. v. Jyoti Structures Ltd. ¹, the Hon'ble High Court dwelled upon the question - whether a proceeding going on under Section 34 of the Arbitration and Conciliation Act, 1996 (hereinafter referred as "the Act") need to be stayed, in light of Section 14(1)(a) of the Insolvency and Bankruptcy Code ( hereinafter referred as "the Code").

In the instant case, a petition was filed under Section 34 of the Act, for setting aside the arbitral award passed by the arbitral tribunal in favour of the Respondent. During the pendency of the abovementioned petition, an application under Section 7 of the Code, was filed by a financial creditor against the Respondent company before the National Company Law Tribunal- Mumbai (hereinafter referred as "the NCLT") seeking initiation of the corporate insolvency resolution process against the Respondent and by an order dated