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A S Chaudhary Enterprises vs. Technofab Engineering Limited

Arbitration Petition · 2026:DHC:7934Decided 16 Sept 2026New Delhi Bench
ARB.P. 1656/2026CNR: DLHC010437392026
Justice Om Prakash Shukla

Background

The petitioner sought appointment of an arbitrator against the respondent company, but during the hearing it emerged that the respondent was already undergoing Corporate Insolvency Resolution Process (CIRP), meaning an insolvency resolution professional (RP) had taken over management of its affairs.

Decision Breakdown

Given the ongoing CIRP, the petitioner's counsel sought leave to withdraw the arbitration petition, with liberty to instead lodge its claim with the Resolution Professional handling the insolvency process. The Court granted this leave and dismissed the petition as withdrawn.

Lesson Learnt

Once a company enters formal insolvency proceedings (CIRP), creditors and counterparties generally cannot pursue separate arbitration or civil claims against it: they must instead file their claims with the appointed Resolution Professional as part of the insolvency process.

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