A company and a third party held arbitration proceedings but prior to the company paying its debt it entered into stay of proceedings status.
The Supreme Court held that after a company enters liquidation proceedings (or a stay of proceedings) the authority to clarify a debt claim is transferred to the trustee or liquidator. Within the scope of its authority to decide upon debt claims, the trustee has broad authority, including the authority to examine whether a judgment given in favor of a creditor reflects a real charge – an authority called "peeking behind the curtain". The rationale behind this authority is to prevent a conspiracy between the company and its related party, by concealing assets from the creditors. This authority exists both in relation to a Court holding and an arbitration award, even though under ordinary circumstances an arbitrator award is unenforceable without a legal proceedings to give it a power of a Court verdict.