Tribunal Refers Maintainability Issue to Larger Bench

The Tribunal referred the matter to a Larger Bench to decide on the application's maintainability during winding-up proceedings. The case file was directed to the National Company Law Tribunal, New Delhi, for further consideration in line with evolving jurisprudence.

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Issues:
1. Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 for Corporate Insolvency Resolution Process.
2. Compliance with Section 8 of the Code for filing the application.
3. Dispute regarding the existence of the debt.
4. Maintainability of the application during the pendency of winding-up proceedings.

Analysis:
1. The Applicant, Aarti Industries Limited, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process against Khushbu Vinyl Private Limited as the Corporate Debtor. The application was filed after the transfer of a Company Petition from the High Court to the Tribunal, following the rules for transferring pending proceedings.

2. The Respondent raised objections, including issues related to the demand notice, compliance with Code provisions, and the validity of the claimed invoices. The Respondent disputed the existence of the debt and highlighted the pendency of winding-up proceedings before the High Court, questioning the maintainability of the application.

3. The key points for consideration included the sufficiency of the demand notice, existence of a debt dispute, and the impact of the pending winding-up proceedings on the application's maintainability. The Tribunal referred the matter to a Larger Bench due to conflicting views on the maintainability of such applications during winding-up proceedings.

4. In light of the Special Bench's order and the need for a consistent decision, the Tribunal directed the matter to be referred to a Larger Bench for a decision on the application's maintainability during the pendency of winding-up proceedings. The Registry was instructed to send the case file to the National Company Law Tribunal, New Delhi, for further consideration by the Larger Bench, in line with the evolving jurisprudence on the issue.

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