Moratorium under the Insolvency Code restrained further Section 9 orders, leaving deposited funds subject to insolvency proceedings.

A Section 9 petition under the Arbitration and Conciliation Act concerned money already realised under an encashed bank guarantee and deposited with the Registrar General. Because insolvency proceedings were pending before the NCLT and the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 was in force, the Delhi HC declined to pass any further order in the Section 9 matter. The deposited amount was directed to remain in deposit, subject to the orders passed in the insolvency proceedings, and the petitioner was left at liberty to seek appropriate relief before the insolvency forum.

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Issues: Whether any further order could be passed in the Section 9 proceedings in view of the moratorium under the Insolvency and Bankruptcy Code, 2016 and the pending insolvency proceedings.

Analysis: The petition was under Section 9 of the Arbitration and Conciliation Act, 1996. The bank guarantee had already been encashed and the amount stood credited to the account of the Registrar General. In view of the pending insolvency proceedings before the NCLT and the moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, the Court declined to pass any further order. The amount was directed to remain in deposit, subject to orders in the insolvency proceedings, and liberty was reserved to seek appropriate relief there.

Conclusion: No further order could be passed in the Section 9 petition, the deposited amount was to be retained subject to the insolvency proceedings, and the petitioner was relegated to seek appropriate relief before the insolvency forum.

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