2017 (6) TMI 1326 - Tri - Insolvency and Bankruptcy

Winding up petition - initiation of CIRP - HELD THAT - The petition is disposed off with the observation that this petition may be forwarded to Hon'ble Delhi High Court as insolvency process under the Insolvency and Bankruptcy Code, 2016 cannot be triggered in the face of the winding up proceeding pending before the Hon'ble Delhi High Court - the winding up proceedings which are in progress in the Hon'ble Delhi High Court may constitute a better basis for adjudication being earlier in point of time and the claim having been made there by other Operational Creditors as well. This matter is referred to Hon'ble Delhi High Court which may be considered along with Co.PET. No. 961/2015 (Meera Nayar v. ABW Infrastructure Ltd.). The Registry is directed to send all the papers at the earliest.

Summary

Issues Involved:
1. Transfer of petition from National Company Law Tribunal to Delhi High Court due to pending winding up proceedings.

Analysis:
The judgment addresses the issue of transferring a petition from the National Company Law Tribunal to the Delhi High Court due to the presence of winding up proceedings. The petitioner's counsel informed the Tribunal about a winding up petition pending before the Delhi High Court, and the matter was scheduled for a hearing. The Tribunal decided to dispose of the petition and forward it to the Delhi High Court as the insolvency process under the Insolvency and Bankruptcy Code, 2016 could not be initiated while winding up proceedings were ongoing. The Tribunal referred to a previous case to support its decision, highlighting the potential conflict between the Official Liquidator and the Insolvency Resolution Professional if both processes were to run simultaneously. The Tribunal emphasized that the winding up proceedings, being earlier in time, should take precedence for adjudication, especially considering the involvement of other Operational Creditors. The judgment directed the Registry to send all relevant documents to the Delhi High Court promptly and instructed the parties to appear before the High Court on the specified date.

This judgment showcases the Tribunal's careful consideration of the legal implications of initiating insolvency proceedings while winding up proceedings are already underway. By prioritizing the winding up proceedings due to their earlier initiation and the potential conflicts that could arise between different statutory entities, the Tribunal ensured a coherent and efficient resolution process. The decision to transfer the petition to the Delhi High Court demonstrates a respect for legal procedures and a commitment to avoiding unnecessary legal conflicts. The judgment serves as a reminder of the importance of coordination and coherence in insolvency and winding up proceedings to uphold the integrity of the legal system and protect the interests of all parties involved.