Parallel winding-up petition declined where final winding-up proceedings were already pending and creditor could prove its claim there.

A creditor's separate winding-up petition under the Companies Act was not entertained where the same company was already declared sick and a final winding-up reference under the sick industrial companies law was pending. The court reasoned that, once final winding-up proceedings were already in motion, there was no practical basis to proceed independently with the creditor's petition because the creditor must establish its claim in the collective winding-up process before the Official Liquidator alongside other creditors. The creditor's claim remained protected and could be proved in those proceedings in accordance with the Companies Act, so the separate petition was disposed of.

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Issues: Whether a creditor's winding-up petition under section 433(e) read with section 434 of the Companies Act, 1956 should be entertained when a reference for final winding up of the same company is already pending pursuant to an order under section 20(2) of the Sick Industrial Companies (Special Provisions) Act, 1985.

Analysis: The company was already declared a sick industrial company and the Board for Industrial and Financial Reconstruction had referred the matter to the Court for passing a final winding-up order. In that situation, the Court held that there was no purpose in keeping the creditor's separate petition pending or in hearing it independently, because the creditor would have to establish its claim in the winding-up proceedings before the Official Liquidator along with other creditors. The Court further held that the creditor's claim would remain protected and could be proved in the winding-up process in accordance with the Companies Act.

Conclusion: The petition was not entertained and was disposed of, with the creditor left to pursue its claim in the winding-up proceedings.

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