Shardul Amarchand Mangaldas & Co acts for Lanco Infratech Limited before the Madras High Court with regard to the liquidation process under Insolvency and Bankruptcy Code, 2016.
October 21, 2020
Shardul Amarchand Mangaldas & Co acted for the Liquidator of Lanco Infratech Limited before the Madras High Court in a proceeding under Section 9 of the Arbitration and Conciliation Act, 1996. This proceeding was initiated by Chennai Metro Rail Limited essentially seeking that the Liquidator of Lanco Infratech Limited must seek leave of the NCLT for continuing the arbitration proceeding, as Lanco Infratech Limited was undergoing liquidation process under the Insolvency and Bankruptcy Code, 2016.
By this judgment, the Learned Single Judge of the Madras High Court has dismissed the proceeding filed against the Lanco Infratech Limited and upheld the Liquidator’s contention that leave of the NCLT is not required for continuing a pending proceeding, while a company undergoes a liquidation process under the Insolvency Code.
Our team was led by Ameya Gokhale, Partner; Allwin Godwin, Principal Associate; Rishabh Jaisani, Senior Associate & Akhila J. Associate;
The judgment is significant as the Madras High Court has analyzed the provisions of the Companies Act, 2013 and the Insolvency Code. The Madras High Court has observed that Section 279 of the Companies Act, 2013, which requires leave of the NCLT for institution and continuation of a proceedings will stand overridden by Section 33(5) of the Insolvency Code.
The Madras High Court has also observed that the since the Arbitral Tribunal had rejected the contention of Chennai Metro Rail Limited, i.e. the requirement of leave under Section 279 of the Companies Act, 2013 for continuation of arbitration proceedings, interim orders under Section 9 could not be granted.
Chennai Metro Rail Limited was represented by Additional Advocate General, Arvind Pandian instructed by S Arjun Suresh.
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