In Brief
The Supreme Court addressed the tension between winding-up petitions filed in High Courts before the Insolvency and Bankruptcy Code came into force and insolvency petitions filed thereafter under the Code. The Court held that Rules 26–27 of the Companies (Court) Rules, 1959 refer to pre-admission notice and hearing, not post-admission proceedings. Financial creditors may file independent insolvency petitions under Section 7 of the IBC at any time before a winding-up order is passed; such petitions are unaffected by pending High Court proceedings. Section 11(d) of the IBC does not bar creditors from initiating petitions; it only restricts corporate debtors after liquidation is ordered. The Court granted liberty to transfer the pending winding-up petition to the NCLT under the amended Section 434 of the Companies Act, 2013.
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