Prior admitted winding-up proceedings bar a parallel insolvency petition; creditors must proceed in the existing process.

A subsequent Section 7 insolvency petition was not maintainable where a winding-up proceeding against the corporate debtor had already been admitted by the High Court and was still pending, with admission and advertisement steps already taken. The Tribunal treated the earlier winding-up process as the controlling proceeding because it had progressed beyond filing and had not been transferred, and it found that parallel insolvency action would create multiplicity of proceedings and conflict between forums. Creditors were therefore required to pursue their claims in the existing winding-up proceeding rather than start a fresh insolvency resolution process. The petition was dismissed.

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Issues: Whether a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was maintainable when a winding-up proceeding against the corporate debtor had already been admitted and was pending before the High Court, and whether creditors not pursuing the winding-up proceeding could invoke the Insolvency and Bankruptcy Code, 2016 independently.

Analysis: The pending winding-up proceeding had been admitted long before the Section 7 petition and had not been transferred to the Tribunal. The earlier proceeding had progressed beyond mere filing, with admission and advertisement steps having been taken. The reasoning adopted was that where a winding-up proceeding is already in progress before the High Court, allowing a parallel insolvency resolution process would create multiplicity of proceedings and conflict between statutory fora. Reliance was placed on the line of authority holding that once winding-up proceedings are already initiated and continuing, creditors must pursue their claims in that proceeding rather than commence a fresh insolvency action before the Tribunal.

Conclusion: The Section 7 petition was held not maintainable and was dismissed.

Final Conclusion: The prior and continuing winding-up proceeding before the High Court prevailed, and the Tribunal declined to permit a parallel insolvency resolution process against the same corporate debtor.

Ratio Decidendi: Where a winding-up petition against a corporate debtor has already been admitted and is pending before the High Court, and has not been transferred, a subsequent Section 7 insolvency petition before the Tribunal is not maintainable because parallel proceedings are impermissible and creditors must seek relief in the existing winding-up process.

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