# In the matter of Hindustan Controls & Equipment Private Limited

> NCLT judgment dated 2024-04-23. Citation: TCN-2024-NCLT-01640. The case involves an application filed by the Resolution Professional (RP) of Hindustan…

- **Court:** NCLT
- **Order date:** 23 Apr 2024
- **Citation:** TCN-2024-NCLT-01640
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/hindustan-controls-equipment-private-limited-647af906

## Summary

### Background

The case involves an application filed by the Resolution Professional (RP) of Hindustan Controls and Equipment Private Limited, the Corporate Debtor, seeking to set aside an arbitral award. The RP contends that the arbitral award was passed after the initiation of the resolution process against the Corporate Debtor, violating the moratorium imposed under Section 14 of the IBC. The arbitrator was allegedly aware of the insolvency proceedings but continued with the arbitration. The applicant cited a Supreme Court decision stating that arbitration instituted after the moratorium is non est in law.

## Facts

Hindustan Controls and Equipment Private Limited is undergoing a Corporate Insolvency Resolution Process (CIRP). An arbitral award was passed against Hindustan Controls and Equipment Private Limited. The Resolution Professional (RP) of Hindustan Controls and Equipment Private Limited filed an application before the NCLT to set aside the arbitral award. The RP argued that the arbitral award was passed after the initiation of the CIRP and in violation of the moratorium under Section 14 of the IBC. The arbitrator was allegedly aware of the CIRP but proceeded with the arbitration. Steel Authority of India (SAIL) is the respondent in the application. The respondent contended that the NCLT lacks jurisdiction to set aside the arbitral award and that the challenge should be

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## Issues and analysis

### Issue 1: Whether the NCLT has the jurisdiction to set aside an arbitral award passed during the moratorium …

**Ratio:** The NCLT's jurisdiction is limited to matters related to the Insolvency Resolution

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**Reasoning:** The Tribunal lacks jurisdiction to set aside an Arbitral Award, although it was passed in

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**Interpretation:** The NCLT's power to adjudicate questions of law or fact arising out of

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**Application:** In this case, the NCLT found that it lacked jurisdiction to set aside the

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Subodh Kumar…
- **Respondents:** Hindustan…; Steel Authority…

## Timeline

- **2019-01-01 — CP(IB) No. 125…**: Filing of CP(IB) No.…
- **2022-07-05 — Order for Resolution…**: Order passed initiating Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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