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Sh. Devendra Singh Yadav & Ors. vs. M/S. Parsvnath Developers Limited

Enforcement Petition (Commercial Arbitration) · 2026:DHC:8878Decided 7 Oct 2026New Delhi Bench
OMP (ENF.) (COMM.) 48/2021CNR: DLHC010117932021
Justice Om Prakash Shukla

Background

The decree holders were trying to enforce an arbitral award against Parsvnath Developers. During the proceedings it emerged that Parsvnath was undergoing Corporate Insolvency Resolution Process (CIRP) under insolvency law, meaning claims against it generally have to be routed through the insolvency process rather than ordinary enforcement.

Decision Breakdown

Counsel for the decree holders sought leave to withdraw the enforcement petition, with liberty to raise the claim before the Resolution Professional (RP) handling the insolvency, and to refile later if needed. The Court granted this, directed the RP to examine the claim in accordance with law, and dismissed the petition as withdrawn.

Lesson Learnt

If the company you're trying to recover money from enters insolvency proceedings, your enforcement claim generally has to be pursued through the Resolution Professional rather than through continued court enforcement.

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