# In the matter of Sunflag Iron & Steel Co. Ltd. vs. J. Poonamchand & Sons MISC. CIVIL APPLICATION NO.374-2020

> HC judgment dated 2023-06-05. Citation: TCN-2023-HC-00060. This is a Misc. Civil Application under Section 11(6) of the Arbitration and Conciliation Act,…

- **Court:** HC
- **Order date:** 5 Jun 2023
- **Citation:** TCN-2023-HC-00060
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/sunflag-iron-steel-co-ltd-vs-j-poonamchand-sons-misc-civil-application-no374-202-77bfd2a5

## Summary

### Background

This is a Misc. Civil Application under Section 11(6) of the Arbitration and Conciliation Act, 1996, for the appointment of an arbitrator due to an arbitration clause in an agreement dated 30/08/2019 between M/s. Sunflag Iron & Steel Co. Ltd. (applicant) and M/s. J. Poonamchand & Sons (respondent). The respondent opposed the application, arguing that since they had approached the NCLT under the Insolvency and Bankruptcy Code (IB Code), the provisions of Section 11(6) of the Arbitration and Conciliation Act would be inapplicable. The applicant contended that the mere initiation of insolvency proceedings does not prevent the court from entertaining the application for appointment of an arbitrator.

## Facts

M/s. Sunflag Iron & Steel Co. Ltd. filed an application under Section 11(6) of the Arbitration and Conciliation Act, 1996, seeking the appointment of an arbitrator due to an arbitration clause in an agreement dated 30/08/2019 with M/s. J. Poonamchand & Sons. The respondent, M/s. J. Poonamchand & Sons, opposed the application, arguing that they had initiated proceedings under the Insolvency and Bankruptcy Code (IB Code) before the NCLT. The respondent contended that Section 11(6) of the Arbitration and Conciliation Act would be inapplicable due to the overriding effect of the IB Code under Section 238. The applicant argued that the mere initiation of insolvency proceedings does not prevent the court from appointing an arbitrator. The respondent also claimed

…

## Issues and analysis

### Issue 1: Whether the provisions of the IB Code interdict the appointment of an arbitrator by invoking …

**Ratio:** The admission of an application under Section 7(5) of the IB Code, after the Adjudicating

…

**Reasoning:** The court reasoned that the Adjudicating Authority must apply its mind, record a finding

…

**Interpretation:** The court interpreted Section 238 of the IB Code and its overriding effect in

…

**Application:** In this case, since the Adjudicating Authority had not yet admitted the

…

## Parties

- **Judges:** AVINASH G.…
- **Appellants:** M/s. Sunflag Iron…
- **Respondents:** M/s. J. Poonamchan…

## Timeline

- **2019-08-30 — Agreement…**: Date of the agreement containing the…
- **2019-10-23 — Applicant's…**: Applicant sends an email stating they will…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/high-courts-new-delhi/sunflag-iron-steel-co-ltd-vs-j-poonamchand-sons-misc-civil-application-no374-202-77bfd2a5