Insolvency and Arbitration law are premised on very contradictory legal principles. On one hand, the insolvency law aims for a centralized approach towards determination and enforcement of liabilities among parties. On the other hand, arbitration law provides for a mechanism where contracting parties choose their own forum to resolve disputes in a completely decentralized manner. This apparent conflict has often led to the raising of several important legal propositions in cases when these incompatible laws collide. This article analyses the hostility between the Arbitration and Conciliation Act 1996 and the Insolvency and Bankruptcy Code 2016 in terms of its effect on the continuation of arbitration proceedings and the consequent enforcement of arbitral awards against the insolvent party. The paper deals with this legal conundrum under both domestic and foreign seated arbitration proceedings. This discussion assumes special importance due to the lack of literature and precedents on the proposition.