SBI's application under Section 7 for insolvency was admitted, asserting that pendency of winding-up proceedings cannot override corporate revival objectives under IBC.
SBI’s ₹178 Cr Insolvency Application Admitted
The NCLT admitted an insolvency application filed by the State Bank of India (SBI) against Martina Bio Genics Private Limited, ruling that existing winding-up proceedings cannot impede corporate revival efforts prescribed under the Insolvency and Bankruptcy Code, 2016 (IBC).
This decision reinforces the legal framework within which insolvency applications operate, favoring corporate rehabilitation over liquidation. It draws attention to the need to balance competing interests in insolvency cases, especially where multiple proceedings may influence the outcome.
Practitioners should take note of this ruling in understanding the interplay between winding-up and insolvency applications, advising clients on how to navigate these complex legal landscapes.
