More Stories

Informist, Monday, Dec. 8, 2025

 

NEW DELHI – The Supreme Court Monday rejected Ansal Properties and Infrastructure Ltd.'s plea challenging an INR-6.43-billion arbitral award favouring Vistra ITCL (India) Ltd. The apex court upheld the Delhi High Court's July order rejecting Ansal Properties' plea on maintainability.

 

Vistra ITCL had raised an objection to the maintainability of the petition filed by Ansal Properties on the ground that the petitioner was undergoing insolvency process. Vistra ITCL had argued that according to an apex court verdict, the moratorium against a corporate debtor includes that there should be no filing of petition by corporate debtor or any other party against the debtor to challenge an arbitral award.

 

In July, the high court said that the logic behind the judgment of the Supreme Court seemed to be that the interest of the corporate-debtor as well as the award-holder should be protected and the resolution plan must be taken to its logical conclusion. The high court had said that as and when the insolvency proceedings against Ansal Properties was finalised, the petitioner would be entitled to avail its remedy in accordance with law.

 

Further, the high court had said that the time during which the corporate-debtor was under moratorium was to be excluded for the purposes of Limitation Act and any other law, would also apply to section 34 of the Arbitration and Conciliation Act, 1996, relating to a challenge of the arbitral award. Challenging the high court's ruling, Ansal Properties had moved the Supreme Court.

 

On Feb. 23, the arbitral tribunal had allowed Vistra ITCL's claims of INR 6.43 billion against Ansal Properties. On Feb. 25, the Delhi bench of the National Company Law Tribunal admitted a petition by IL&FS Financial Services Ltd. to start insolvency proceedings against Ansal Properties and Infrastructure Ltd. for outstanding dues worth INR 2.57 billion. The tribunal directed a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016 against Ansal Properties.

 

At 1438 IST, shares of Ansal Properties and Infrastructure traded flat at INR 3.36 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.