Arbitration Awards as 'Debt' for Initiating Corporate Insolvency Proceedings in India

Abstract

This paper discusses the distinction created by the (Indian) Insolvency and Bankruptcy Code, 2016 between financial and operational creditors for initiation by them of corporate insolvency resolution process against corporate persons for default committed with respect to financial and operational debts, respectively. It examines how this distinction has a bearing on exercise of their right to initiate corporate insolvency resolution process. In particular, the author analyses whether a person can initiate insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 on the basis of an arbitration award (whether domestic or foreign) passed under the Arbitration and Conciliation Act, 1996 in its favour and the different situations relating to such arbitration award that have been considered by courts.