Moratorium of US Bankruptcy Court not applicable in India
Title Suit No.17 of 2023 was filed as anti-arbitration suit and the arbitration proceedings initiated by the petitioner in ICA, USA, were challenged as barred by law. The plaintiffs prayed for declarations and permanent injunction as mentioned in detail in para 27 of the judgment.
The petitioner original defendant no.1 filed an application under Section 45 of the AA in the anti-arbitration suit for reference to arbitration.
In the meanwhile, the petitioner filed an application for stay of the suit on the ground that the order dated 24.10.2023 of the Bankruptcy Court of District of Delaware US, under Chapter 11 of US Bankruptcy Code operates as a world wife temporary stay as the proceedings before US Court are akin to the CIR process in India and Section 14 of IBC.
Cross-border Insolvency – applicability on the touchstone of doctrine of Comity of Nations and Comity of Courts as a sovereign function. Sections 44A, 13 and 14 of the Code of Civil Procedure with regard to enforcement of foreign decrees and orders of foreign courts with which India did not have reciprocity and the bankruptcy order was not passed in a proceeding between the parties to the suit.
The proceedings in the suit are not insolvency proceedings. Secondly, the anti-arbitration suit in India was prior in time to the order of USA Court.
Judgment dated 22.5.2024 C.O.No.241 of 2024 of Uphealth Holdings, INC Vs. Dr. Syed Sabahat Azim and others
