Page 214 - IBC Orders us 7-CA Mukesh Mohan

Order Passed by Sec 7
Hon’ble NCLT Ahmedabad Bench
13. There is no bar in the Insolvency Code either expressly or impliedly debarring the creditors from

triggering the insolvency resolution process under Sections 7, 9, 10 of the Insolvency Code, other
than Section 11 of the Code, Section 11 of the Code listed out the persons not entitled to make
Application. Section 11 of the Code listed out the persons not entitled to make Application.

Section 11 of the Code listed out the persons not entitled to make Application. Section 11 of the
Code has got four clauses. State Bank of India and its Associate Banks do not come under any of

the Clause of Section 11 of the Code. Therefore, there is nothing that prevent the State Bank of
India and its Associate Banks who are Financial Creditors from triggering the insolvency
resolution process under Section 7 of the Code.

14. The pendency of winding up proceedings before the Hon'ble High Court of Bombay before its
admission is no bar either for the initiation of proceedings under section 7 of the Code or for
continuation of such proceedings.

15. In the case on hand, in Company Petition No. 194 of 2016, the winding up petition has not yet
been admitted; no winding up order has been passed by the Hon'ble High Court of Bombay.
There is no order appointing official Liquidator as Interim Liquidator.

16. When there is no order passed by the Hon'ble High Court of Bombay, the argument of the Senior
Learned Counsel appearing for the Applicant that the order which is going to be passed by the

Hon'ble High Court of Bombay on 19.7.2017 would come in conflict with the order that is going
to be passed by this Adjudicating Authority today cannot be accepted. The Applicant has no
knowledge as to what is the order that is going to be passed by this Adjudicating Authority in CP

No.(IB) 48/2017. Even according to the Applicant, no order has been passed by the Hon'ble High
Court of Bombay till today admitting the winding up proceedings. It is not known what is the
order that is going to be passed by the Hon'ble High Court of Bombay in the winding up the

proceedings. Therefore, without knowing what are the orders that are going to be passed by this
Adjudicating Authority in CP No.(IB) 48/2017 and by the Hon'ble High Court of Bombay in
Company Petition No. 194 of 2016, this Application is filed only with a view to prevent this

Adjudicating Authority from exercising its jurisdiction which is vested on this Authority by virtue
of the provisions of the Insolvency Code.

17. In case CP No.(IB) 48/2017 is admitted, there would be stay of all further proceedings pending in
any Court of Law by virtue of the provisions of Section 14 of the Code. In such a case, even if CP
No.(IB) 48/2017 is admitted, it is not going to create any conflict of orders. More over, Section

238 of the Code overrides other Laws.
18. On this aspect, Division Bench of the National Company Law Tribunal, Chennai, by its order

dated 21.4.2017 in CA/1/(IB)/2017 clearly held that the pendency of winding up petition cannot

214