Prior approval for liquidator-initiated arbitration is mandatory, but post facto approval makes invocation effective from the approval date.

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....Prior approval of the Adjudicating Authority under the proviso to section 33(5) is mandatory before a liquidator initiates arbitration for a corporate debtor in liquidation. As arbitral proceedings commence when the request for reference is received under the Arbitration and Conciliation Act, the arbitration invocation notice cannot validly take effect before that approval. The discussion distinguishes a lack of prior approval from voidness: section 33(5) does not expressly nullify proceedings commenced without approval. On a purposive construction, post facto approval renders the invocation effective from the approval date, and subsequent arbitral steps must proceed afresh from that date.....