The NCLT admitted SBI's insolvency application against Martina Bio Genics, clarifying that ongoing winding-up proceedings do not obstruct the revival goals under the Insolvency and Bankruptcy Code, 2016 (IBC).
Insolvency Application Admission by NCLT
The National Company Law Tribunal (NCLT) has admitted a Section 7 insolvency application filed by the State Bank of India (SBI) against Martina Bio Genics Private Limited for ₹178 crore. The Tribunal ruled that pending winding-up proceedings could not override the objective of corporate revival under the Insolvency and Bankruptcy Code, 2016 (IBC).
The Tribunal emphasized the IBC's intent to promote corporate revival and transformation, asserting that it serves a vital economic purpose. According to the provisions of the IBC, the resolution process is aimed at maximizing the value of assets and balancing stakeholder interests, which is deemed essential for promoting entrepreneurship and ensuring market stability.
Legal practitioners should note the implications of this ruling, especially in cases where companies face dual proceedings—insolvency and winding-up—highlighting the precedence that the IBC holds in facilitating corporate rehabilitation.
Citations
- State Bank of India v. Martina Bio Genics Private Limited (2026) NCLT
