High Court jurisdiction prevails where winding-up proceedings under the sick industrial law were already in motion.

Where a company had already been declared sick and the BIFR had confirmed an opinion for winding up under the Sick Industrial Companies (Special Provisions) Act, 1995, the pending High Court winding-up process continued to govern the matter. The Tribunal relied on the statutory position and the Central Government notification preserving High Court jurisdiction once winding-up proceedings had been initiated on that basis. In those circumstances, the insolvency application under the corporate insolvency regime was not entertainable before the Tribunal, and the claimant was directed to pursue its claim before the Official Liquidator.

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Issues: Whether the Tribunal could entertain an application for initiation of corporate insolvency resolution process when the company had already been the subject of winding up recommendations under the Sick Industrial Companies (Special Provisions) Act, 1995 and the High Court process stood in motion.

Analysis: The existing record showed that the company had been declared sick, that the Board for Industrial and Financial Reconstruction had formed and confirmed an opinion for winding up under section 20(1) of the Sick Industrial Companies (Special Provisions) Act, 1995, and that the Appellate Authority had upheld that position. The Tribunal also relied on the Central Government notification preserving the jurisdiction of the High Court in cases where winding up proceedings had already been initiated pursuant to a recommendation under the said Act. In these circumstances, the matter was held to lie before the High Court and the Official Liquidator, not before the Tribunal under the insolvency regime.

Conclusion: The Tribunal could not entertain the insolvency application and the petitioner was directed to approach the Official Liquidator with its claim.

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