In Brief
A financial creditor filed an insolvency application under Section 7 of the Insolvency Code before the NCLT while winding up proceedings initiated under the Sick Industrial Companies Act remained pending before the High Court. The High Court set aside the NCLT's admission of the application, holding it passed without jurisdiction. The Supreme Court held that an independent Section 7 application is a separate proceeding which the NCLT can admit and process in parallel to pending winding up proceedings. By virtue of Section 238 of the Insolvency Code, the Code overrides inconsistent provisions in other statutes. Pending winding up proceedings may be transferred to the NCLT on application by any party. The Court allowed the appeal and set aside the High Court judgment.
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