In Brief
This case concerns the interplay between winding-up petitions under the Companies Act and insolvency proceedings under the IBC. An operational creditor filed a winding-up petition in the High Court in 2014. Subsequently, a financial creditor filed an independent insolvency petition under Section 7 of the IBC, which was admitted. The Supreme Court held that IBC proceedings are independent and must run their full course, overriding parallel winding-up proceedings by virtue of Section 238 of the IBC. The Court clarified that Rule 26 notices refer to pre-admission notices and that Section 11(d) does not bar creditors from filing independent insolvency petitions. The appeal was disposed with liberty to apply for transfer of the winding-up petition to the NCLT.
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