Government Company Not Exempt from Insolvency Code; Arbitration Doesn't Halt Proceedings.

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Full Text of the Document

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....Initiation of CIRP - Maintainability of application filed u/s 9 of the Code - Respondent being a government company (PSU) is out of purview of the Code or not - The tribunal did not accept the argument that being a government entity exempted the respondent from insolvency proceedings, especially since operational engagements like the ones in question fell within the ambit of the Code. - Further, the tribunal noted that the arbitration proceedings under the MSME Act initiated by the appellant after the CIRP application did not constitute a pre-existing dispute that would affect the insolvency proceedings.....