2019 (4) TMI 2059 - SC - Insolvency and Bankruptcy

Validity of fresh proceedings u/s 7 of IBC - NCLT proceedings have been stayed in a petition filed under Sections 8 9 by an operational creditor - HELD THAT - It is clear that the applicant is a financial creditor and has been thwarted, at the out set, by the order dated 12.12.2018 stating that as the NCLT proceedings have been stayed in a petition filed under Sections 8 9 by an operational creditor, a fresh proceeding under Section 7 of the Code cannot continue. Application disposed off.

Summary

The Supreme Court allowed the application for intervention by a financial creditor. The court clarified that its previous order did not prevent other creditors from proceeding under the law, subject to objections. The application was disposed of accordingly.