In Brief
An operational creditor had filed a winding-up petition against a company in 2014. Later, a financial creditor filed an independent insolvency petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, which was admitted by the NCLT. The appellate tribunal dismissed the operational creditor's appeal against this admission. The Supreme Court held that independent insolvency proceedings under the Code must proceed unhampered by pending winding-up petitions. The Court clarified that Rules 26 and 27 refer to pre-admission notices and approved the Bombay High Court's view on interpretation. The Court disposed of the appeal but granted the appellant liberty to apply under Section 434 of the Companies Act to transfer the pending winding-up proceeding to the NCLT.
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