IBC section 7 petition proceeds on merits despite pending writ and arbitration-related proceedings

A section 7 Insolvency and Bankruptcy Code petition was listed before the NCLT despite pending writ proceedings and an earlier section 8 Arbitration and Conciliation Act application. The Tribunal noted the limited effect of the High Court's interim orders and directed the parties to argue the main petition on merits. The matter was therefore fixed for further hearing, with the insolvency petition left to be determined in the ordinary course notwithstanding the parallel proceedings.

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Issues: Whether the Tribunal should proceed to hear the petition under section 7 of the Insolvency and Bankruptcy Code, 2016 notwithstanding the pending writ proceedings and the earlier application under section 8 of the Arbitration and Conciliation Act, 1996.

Outcome: The Tribunal directed the parties to argue the main petition on merits and fixed the matter for further hearing, while noting the pending writ appeal and the limited effect of the High Court's interim orders.

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