INSOLVENCY PROCEEDINGS UNDER THE INSOLVENCY AND BANKRUPTCY CODE, 2016 OVERRIDE THE LIQUIDATION PROCEEDINGS UNDER THE COMPANIES ACT.
In the matter of A Navinchandra Steels Pvt. Ltd. Vs SREI Equipment Finance Ltd. &Ors.(2021) SCC OnLine SC 149 the Hon’ble Supreme Court by its Judgment dated 01.03.2021, was pleased to uphold the maintainability of Section 7 Insolvency Petition despite the pending liquidation proceedings against a Company M/s Shree Ram Urban Infrastructure Ltd. on the premise that a discretionary jurisdiction under the 5th Proviso to Section 434(1)(c) of the Companies Act, 2013 cannot prevail over the undoubted jurisdiction of NCLT under the Insolvency and Bankruptcy Code, once the parameters of Section 7 and other provisions of the Insolvency and Bankruptcy Codeare met.