Provisional Attachment Under PMLA And Its Effect On Arbitral Tribunal's Jurisdiction

1. Introduction

As litigation disputes in India become increasingly complex, it is common for multiple legal domains to cross paths with each other. One such example is the conflict between arbitral proceedings concerning subject matter that is also the subject of proceedings under the Prevention of Money Laundering Act, 2002 ("PMLA").

In a recent judgment rendered by the Hon'ble Delhi High Court ("High Court"), a important legal question was raised, i.e., whether arbitral tribunals possess the authority to resolve disputes concerning subject matter that is otherwise provisionally attached under the PMLA. The Delhi High Court, in Lata Yadav v. Shivakriti Agro (P) Ltd.¹ extensively deliberated on this issue. In this article, we navigate through the facts of the case and the findings rendered by the High Court.