The interplay of insolvency and arbitration laws has been a topic of jurisprudential discussion and scholarship24 for some time now. Insolvency and arbitration are fundamentally conflicting regimes. Their co-existence has been best described by the US Courts as a ‘conflict of near polar extremes’ as bankruptcy exerts an inexorable pull towards centralization of dispute resolution, while arbitration advocates a decentralised approach.
In India too, the insolvency and arbitration regimes are separately codified. While the (Indian) Arbitration & Conciliation Act, 1996 (“Arbitration Act”) has been in force for much longer, the Insolvency and Bankruptcy Code, 2016 (“IBC”) is more recent and has replaced and consolidated the insolvency laws in India.
Please refer to the below document to read the full article by Dheeraj Nair and Vishrutyi Sahni, published in SIAC India Newsletter, 4th Edition.
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Practicing as a lawyer since 2000 in Indian courts and tribunals. Appeared in twenty High Courts of India and conducted several arbitrations.