NCLT (Delhi Bench) : In State Bank of India vs. Su Kam Power Systems Ltd.

Pendency of arbitration would not cause impediment with regard to initiation of Corporate Insolvency Resolution Process under section 7 unlike sections 8 and 9. In the case of sections 8 and 9, pending arbitration means existence of dispute which bars triggering of insolvency resolution process.

Where arbitration is pending between the corporate debtor and others, and the appellants, intervener, such pendency of arbitration would not cause any impediment with regard to initiation of corporate insolvency resolution process because under section 7 the pendency of an arbitration is no bar to the admission of the petition and initiation of Corporate Insolvency Resolution Process unlike sections 8 and 9.

Link : http://ibbi.gov.in/webadmin/pdf/order/2018/Apr/5th%20Apr%202018%20in%20the%20matter%20of%20Su%20Kam%20Power%20Systems%20Limited%20C.%20P.%20No.%20(IB)-540(PB)-2017_2018-04-17%2010:04:29.pdf