The interplay of arbitration and insolvency sparks complex legal issues which are marked by different legal objectives. This paper explores how Indian courts and tribunals navigate the tensions between the Arbitration and Conciliation Act, 1996, and the Insolvency and Bankruptcy Code, 2016 (IBC).It examines key issues such as the arbitrability of disputes involving insolvent parties, the effect of moratoriums under Section 14 of the IBC on ongoing and prospective arbitration proceedings, and the evolving jurisprudence on when arbitration agreements can be enforced during insolvency proceedings. By analyzing landmark judgments from the Supreme Court and National Company Law Tribunal (NCLT), the paper highlights the Indian judiciary’s efforts to strike a balance between promoting arbitration as a preferred mode of dispute resolution and safeguarding the objectives of the insolvency regime. The study concludes with recommendations for legislative and judicial harmonization to ensure clarity, predictability, and efficiency in the treatment of such overlapping disputes.