# In the matter of Religare Finvest Limited

> NCLT judgment dated 2024-07-10. Citation: TCN-2024-NCLT-01037. Century Aluminium Company Limited, the applicant and corporate debtor, filed an application…

- **Court:** NCLT
- **Order date:** 10 Jul 2024
- **Citation:** TCN-2024-NCLT-01037
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/religare-finvest-limited-46fa44be

## Summary

### Background

Century Aluminium Company Limited, the applicant and corporate debtor, filed an application (I.A. (I.B.C) No. 542(KB)2024) against Religare Finvest Limited, the respondent and financial creditor, seeking various reliefs, including referring disputes to arbitration, dismissing the company petition (С.Р.(IB)/142(KB)/2023), and staying proceedings related to the company petition until the disposal of the application. The application arises from a loan agreement dated 2015-09-14 between the applicant and respondent, which contained an arbitration clause. The respondent initiated arbitration after the applicant defaulted on loan repayment, but the unilaterally appointed arbitrator withdrew, necessitating a new arbitration tribunal. The applicant argues that since

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## Facts

A loan agreement was executed between Century Aluminium Company Limited (Applicant/Corporate Debtor) and Religare Finvest Limited (Respondent/Financial Creditor) on 2015-09-14, containing an arbitration clause (Clause 20). Century Aluminium defaulted on the loan repayment, leading Religare Finvest to issue a recall notice and invoke arbitration on 2019-06-08. Religare Finvest unilaterally appointed an arbitrator, who later recused himself due to conflict of interest, citing a Supreme Court ruling. Century Aluminium sent an OTS (One Time Settlement) proposal on 2022-05-25, rejected by Religare Finvest on 2022-06-02. Religare Finvest filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) on 2023-06-22. Century Aluminium then filed an application

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## Issues and analysis

### Issue 1: Whether the commencement of arbitration proceedings prior to the filing of a Section 7 IBC petition …

**Ratio:** The Hon'ble Supreme Court in Booz Allen and Hamilton Inc. vs. SBI Home Finance Ltd. &

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**Reasoning:** The NCLT reasoned that it does not matter whether arbitration proceedings commenced

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**Interpretation:** The court interpreted that certain disputes, particularly those related to

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**Application:** The court applied this principle to the case, stating that the question of

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## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** Century Aluminium…; Religare Finvest…

## Timeline

- **2015-09-14 — Loan Agre…**: Loan agreement executed between Century Aluminium Company Limited and Religare Finvest…
- **2019-06-08 — Recall Notice and…**: Religare Finvest issued a recall notice and invoked arbitration due to Century…

## 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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