Non-arbitrability of winding up proceedings bars Section 8 reference despite an arbitration clause in the company dispute

An application under Section 8 of the Arbitration and Conciliation Act, 1996 is not maintainable in a company petition for winding up because winding up is a statutory matter reserved for the High Court and is non-arbitrable. An arbitral tribunal cannot order winding up, and the existence of an arbitration clause does not permit reference of such proceedings to arbitration. Only disputes capable of private adjudication may be referred under Section 8, while insolvency and winding up matters remain outside arbitral jurisdiction.

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Issues: Whether an application under Section 8 of the Arbitration and Conciliation Act, 1996 is maintainable in a company petition for winding up.

Analysis: Winding up of a company is a matter reserved by statute for adjudication by the High Court, and an arbitrator has no jurisdiction to order winding up. Disputes relating to winding up fall within the category of non-arbitrable matters, and the existence of an arbitration clause does not enable a court dealing with a winding up petition to compel reference to arbitration under Section 8. The Court followed the principle that only disputes capable of being decided by an arbitral tribunal can be referred, while insolvency and winding up matters remain excluded from private adjudication.

Conclusion: The application under Section 8 was not maintainable and was rightly dismissed; the result is against the applicant and in favour of the petitioner in the company petition.

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