Maintainability Of A Section 7/Section 9 Ibc Proceedings During The Pendency Of Winding Up Petition

The Hon'ble Supreme Court of India by its recent judgment passed on 1^st March, 2021 in A. Navinchadra Steel Pvt. Ltd Vs. SREI Equipment Finance Limited & Ors¹ has settled the law in respect of maintainability of a section 7 and/or Section 9 Petition filed under Insolvency and Bankruptcy Code, 2016 ("IBC/Code") after the admission of winding up Petition/during the pendency of the winding up Petition qua the same Corporate debtor.

The Appellant in this matter contested the maintainability of a section 7 IBC Petition filed before a National Company Law Tribunal ("NCLT") post admission of the winding up Petition qua the same Company on the basis that irreversible/irretrievable steps have already been taken in the winding Petition post its admission and appointment of provisional liquidator by the Hon'ble Bombay High Court. That as per the section 446 of the Companies Act, 1956² no suit or other legal proceedings can be commenced or continued once there is admission of