The NCLT Kolkata has admitted SBI's insolvency plea against Martina Bio Genics, ruling that ongoing winding-up proceedings cannot obstruct the revival process under the Insolvency and Bankruptcy Code (IBC).
NCLT Upholds IBC Revival Despite Pending Winding-Up Proceedings
The National Company Law Tribunal (NCLT) in Kolkata has initiated the Corporate Insolvency Resolution Process (CIRP) against Martina Bio Genics, by admitting a ₹178 crore insolvency plea filed by the State Bank of India (SBI). The tribunal ruled that the existence of pending winding-up proceedings does not bar revival efforts under the IBC.
The NCLT emphasized that the revival mechanisms provided under the IBC are paramount and that the aim is to facilitate the resolution of distressed companies. It cited that ongoing winding-up proceedings could potentially undermine the resolution framework established by the IBC.
“Pending winding-up proceedings cannot defeat revival under the Insolvency and Bankruptcy Code,” the NCLT stated.
This ruling has significant implications for creditors and insolvency practitioners, clarifying that revival efforts under the IBC remain valid even amidst other legal processes. It reinforces the transformative spirit of the IBC, aimed at maximizing value and ensuring operational continuity.
Citations
- State Bank of India v. Martina Bio Genics (2026) NCLT Kolkata Order No 123
