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Insolvency Proceedings and International Commercial Arbitration
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Insolvency proceedings and arbitration are absolutely distinct procedures.However, international commercial arbitration and insolvency do not coexist in isolation of one from another. Present paper is going to discuss the impact of insolvency proceedings on international commercial arbitration. In analyzing arbitrability of insolvency related issues, we may conclude that the fact that one of the parties is in insolvency proceedings does not in itself renders disputes as non-arbitrable. Only core or pure bankruptcy issues are excluded from the arbitration. The analysis of the case law provide that, insolvency proceedings are territorial in their nature and are limited to the state where insolvency proceedings are opened and therefore arbitral tribunal is not bound by the insolvency proceedings conducted in another state.The enforcement of the award rendered against party under insolvency proceedings may be refused in the state where insolvency proceedings are pending due to public policy reasons or non- arbitrability.
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