SC on Maintainability of Insolvency Proceedings

The Supreme Court in A. Navinchandra Steels Private Limited v. SREI Equipment Finance Limited & Others[1], has held that IBC proceedings are independent proceedings, unaffected by winding-up proceedings. Winding-up petition cannot trump any subsequent attempt at revival of the company through the IBC process. Where there is a possibility of revival of the company, every effort should be made to resuscitate it, in larger public interest.

[1] A. Navinchandra Steels Private Limited v. SREI Equipment Finance Limited & Ors., Civil Appeal Nos. 4230-4234 of 2020.

Published In:Inter Alia - Quarterly Edition - March 2021 [ English Chinese japanese ]
Date: March 31, 2021