# In the matter of STT Limited IA(IBC)-485(CHE)-2021 in IBA-838(CHE)-2019

> NCLT judgment dated 2023-03-20. Citation: TCN-2023-NCLT-04144. The case involves an application (IA(IBC)/485(CHE)/2021) filed in IBA/838(CHE)/2019 by the…

- **Court:** NCLT
- **Order date:** 20 Mar 2023
- **Citation:** TCN-2023-NCLT-04144
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/stt-limited-iaibc-485che-2021-in-iba-838che-2019-0b0aee2f

## Summary

### Background

The case involves an application (IA(IBC)/485(CHE)/2021) filed in IBA/838(CHE)/2019 by the liquidator of STT Limited, seeking to quash an arbitration order and restrain arbitration proceedings against the corporate debtor. The Corporate Insolvency Resolution Process (CIRP) was initiated against STT Limited on 2019-08-30, and the applicant was appointed as the Interim Resolution Professional, later confirmed as the Resolution Professional. The company was ordered for liquidation on 2019-12-10. The 4th respondent, NTPC Limited, had entered into a contract with STT Limited, and disputes led to arbitration proceedings. The applicant sought to suspend these proceedings due to financial difficulties and the liquidation order.

## Facts

STT Limited underwent Corporate Insolvency Resolution Process (CIRP) initiated on 2019-08-30. P. Sriram was appointed as the Interim Resolution Professional and later confirmed as the Resolution Professional. Subsequently, the company was ordered for liquidation on 2019-12-10. NTPC Limited, the 4th respondent, had a contract with STT Limited, leading to arbitration proceedings. The liquidator sought to suspend the arbitration due to STT Limited's financial difficulties and the liquidation order. The arbitration tribunal passed an order on 2021-02-05 for continuation of arbitral proceedings. The 4th respondent's claim before the liquidator was dismissed, and they did not appeal. The liquidator filed IA(IBC)/485(CHE)/2021 to quash the arbitration order and restrain the

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## Issues and analysis

### Issue 1: Whether the arbitration proceedings between the Corporate Debtor and the 4th Respondent should be …

**Ratio:** The moratorium under Section 14 of the IBC, 2016 comes to an end on the date of the

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**Reasoning:** The court considered the arguments that the moratorium under Section 14 of the IBC had

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**Interpretation:** The interpretation of Section 14 of the IBC is crucial. The court interprets

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**Application:** The ratio and reasoning apply to the specific facts by allowing the arbitration

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## Parties

- **Judges:** Sh. Ashok Kumar…; SAMEER…
- **Appellants:** P. SR…
- **Respondents:** STT Lim…; SHRI. PRADEEP…

## Timeline

- **2004-04-21 — Letter of Ag…**: NTPC Limited and STT Limited entered into an agreement vide Letter of Agreement Nos. 6466…
- **2008-01-01 — Disputes and Ar…**: Disputes arose between the parties, leading…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 40 — Admission or rejection of claims](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-40)

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