Filing Of Winding Up Petition During Arbitral Proceedings
Someone received an arbitral award from traders association against their debtor and it was challenged on the grounds of validity of arbitration by the opposing party , the proceedings have been going on for 6 + years in high court , can they file a winding up in company law board as the debtors have intentions of disposing the fixed assets ( they have a stay on their assets from the High Court as relief).
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Yes you can file winding up and I am sure you must have done it by now but kindly remember that winding up petition can be only filed for admitted dues and dues which are in dispute cannot be entertained under winding up petition. Why not file section 9 application under the 1996 act. That might help you to restrain the opp-parties from selling of the property or you can secure your amount in question.
Winding up under 434 (1) (a) might not be possible now because of limitation hurdle given that your dispute is going on for more than 6 years now. Also that is for debt which is enforceable & acknowledged by the opposite party (and not a disputed one) However, you can file winding up petition under Section 434 (1) (b) if execution or other process issued on a decree or order of any Court in favour of a creditor of the company is returned unsatisfied in whole or in part.
Tags: Arbitration Arbitration Proceedings