In Brief
A. Navinchandra Steels Pvt. Ltd., an operational creditor, challenged the National Company Law Appellate Tribunal's dismissal of a petition by SREI Equipment Finance Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The core issue was whether a Section 7 petition could proceed when a winding up petition was already admitted by the High Court. The Supreme Court held that Section 7 proceedings are independent of parallel winding up proceedings and can proceed despite admission of a winding up petition. Section 238 of the IBC, a non-obstante clause, ensures IBC provisions override inconsistent provisions of the Companies Act. The Court dismissed the appeal, finding no irreversible steps that would bar the insolvency proceeding, and vacated interim orders, allowing the NCLT proceedings to continue.
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