SC Upholds NCLAT Decision on 2015 Arbitral Award; Matter Referred to NCLT for Operational Creditor Categorization. The SC upheld the National Company Law Appellate Tribunal's decision regarding the arbitral award dated 19.03.2015, as the appellants agreed to abide by ...
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SC Upholds NCLAT Decision on 2015 Arbitral Award; Matter Referred to NCLT for Operational Creditor Categorization.
The SC upheld the National Company Law Appellate Tribunal's decision regarding the arbitral award dated 19.03.2015, as the appellants agreed to abide by the District Court's outcome. The court addressed the categorization of the respondent under operational creditors in the resolution plan but left the matter to the National Company Law Tribunal for consideration. The respondent chose not to pursue the contempt petition, leading to the disposal of the appeal and any related applications.
Issues involved: The issues involved in the judgment are the challenge to the arbitral award dated 19.03.2015, the categorization of the respondent - Kanoria Chemicals and Industries Ltd. under operational creditors in the resolution plan, and the decision regarding the contempt petition.
Challenge to Arbitral Award: The Supreme Court declined to interfere with the finding of the National Company Law Appellate Tribunal regarding the arbitral award dated 19.03.2015. The appellants did not challenge the said finding and stated their intention to abide by the outcome of the challenge before the District Court, Ankleshwar, Bharuch, Gujarat.
Categorization of Respondent under Operational Creditors: The judgment addressed the categorization of the respondent - Kanoria Chemicals and Industries Ltd. under operational creditors in the resolution plan. The impugned judgment did not specify the category in which the respondent would fall. Arguments were presented regarding whether the respondent should be considered in category "H," "G," or "F" of operational creditors. The matter was directed to be raised and considered by the National Company Law Tribunal, leaving all pleas and contentions open.
Contempt Petition: The learned Senior Advocate for the respondent - Kanoria Chemicals and Industries Ltd. informed the court that they would not press the contempt petition in view of the order passed that day. Consequently, the appeal was disposed of, and any pending applications were also disposed of accordingly.
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