Can some eminent friend opined on the following: -
What would be the legal fate of on going arbitration proceedigns where one party has gone in NCLT by itself u/s 10 of IBC or through some financial creditor. Example : A and B are in an arbitration proceedings on some disputes and there are claims and counter claims against each other. A files insolvency proceedings u/s 10 of IBC before NCLT and the petition is admitted and moratoruim is started u/s 14(1) of IBC.
A comes in arbitration on next date and pleas that as per Moratoruim no claims (counter claim) can be proceeded against me, however, A can proceed with their claims before the arbtirator.
What would be the fate of such arbitration proceedings. Whether claims of A will continue against B or both claims and counter clakms shall be stayed by Arbitral Tribunal till moratorium is continuing.