Delhi High Court: Proceedings Initiated Under IBC Does Not Exclude Court Jurisdiction

The Delhi High Court in the case Godavari Projects (J.V) Vs Union of India observed and has held that the proceedings initiated under section 14 of the Insolvency and Bankruptcy Code, IBC do not expressly exclude the jurisdiction of the court or authorities to entertain applications under Section 11(6) of the Arbitration Act or other proceedings initiated by the corporate debtor against another party.

The single bench of Justice Sachin Datta in the case held that even if a Joint Venture is undergoing insolvency, thus, the said bench held that preclude the corporate debtor from filing an application under Section 11.

Facts of the Case:

The present matter relates to the disputes stemmed from a tender process initiated by the Respondent for the 'construction of dwelling units which includes allied services for officers & ORS at Mumbai (Army).' The Petitioner bid was accepted on June 15, 2016, which leads to the issuance of a Work Order on June 27, 2016.

The court stated that due to the reasons not attributed to the petitioner, the work was terminated by the Petitioner on September 14, 2021.

The petition submitted its final bill, but the payment was not released.

The respondent through a letter, purportedly terminated or cancelled the contract under Clause 48 of the GCC, resulting in disputes between the parties. The Petitioner sent a notice invoking arbitration