Insolvency moratorium bars post-admission arbitration and related appeals; proceedings aimed at frustrating the process are impermissible.

Admission of an insolvency petition and commencement of the moratorium barred institution or continuation of proceedings against the corporate debtor. Arbitration initiated after the moratorium could not be sustained in law, and an appellate order entertaining the arbitration-related challenge was inconsistent with the insolvency moratorium regime. Proceedings commenced to obstruct the time-bound insolvency process were also impermissible. The arbitration was therefore treated as non est in law, the impugned appellate order was set aside, and the subsequent proceeding was quashed.

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Issues: Whether, after admission of an insolvency petition and commencement of the moratorium, arbitration proceedings and an appeal under the Arbitration and Conciliation Act could be entertained, and whether proceedings initiated to frustrate the insolvency process were liable to be quashed.

Analysis: Admission of the insolvency petition triggered the statutory moratorium, which expressly barred institution or continuation of proceedings against the corporate debtor. An arbitration commenced after the moratorium could not be sustained in law. An appellate order entertaining the arbitration-related challenge was therefore inconsistent with the moratorium regime. Proceedings initiated in an attempt to obstruct the time-bound insolvency process were also impermissible.

Conclusion: The arbitration initiated after the moratorium was held to be non est in law, the impugned appellate order was set aside, and the subsequent proceeding was quashed.

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