The NCLT has admitted SBI's application under Section 7 of the IBC for insolvency against Martina Bio Genics, stating that ongoing winding-up proceedings cannot obstruct the IBC's objective of corporate revival.
SBI's Insolvency Application Accepted
The NCLT has admitted a Section 7 insolvency application filed by the State Bank of India (SBI) against Martina Bio Genics Private Limited, clarifying that pending winding-up proceedings do not prevent the initiation of corporate insolvency under the Insolvency and Bankruptcy Code, 2016 (IBC).
The ruling emphasizes that the primary goal of the IBC is to facilitate corporate revival, thus allowing insolvency proceedings to progress notwithstanding ongoing winding-up actions. The Tribunal referenced key statutory provisions of the IBC, highlighting its overarching mandate to promote the resolution of corporate debtors.
This decision provides critical insights for corporate lawyers and financial institutions, showcasing that the IBC's revival objectives will prevail over traditional winding-up procedures. Practitioners must closely evaluate the implications of this ruling when advising clients involved in distressed corporate situations.
Citations
- SBI v. Martina Bio Genics (2026) NCLT 2
