Rejected Claims By Resolution Professional In Insolvency Proceedings, To Be Decided By The Arbitrator: Delhi High Court
[18 May 2022] The High Court of Delhi held that the claims rejected by Resolution Professional in the insolvency proceedings on the ground that they arose after the Insolvency Commencement Date (ICD), are to be decided by the arbitrator. The Court held that extinguishment of claims that arose after the Insolvency Commencement Date (ICD) is a contentious issue that is to be decided by the arbitrator when the parties have an arbitration agreement. The Court reiterated that the scope under Section 11 of the A&C Act is confined to the examination of the existence of the arbitration agreement. The Court is not to decide any contentious issue while exercising powers under Section 11 of the Act. The Single Bench of Justice Vibhu Bakhru appointed the arbitrator to decide on the claims of a party that arose after the Insolvency Commencement Date and accordingly not included in the insolvency plan.