2017 (4) TMI 1600

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....in had already instituted proceedings before a Debts Recovery Tribunal in respect of the claim that was made the subject-matter of the petition before the company Court. The Court thereupon proceeded to pass the following order:     "Although the Court can admit winding up petition if a company is unable to pay its debts but having regard to the fact for the selfsame issue the petitioner has already approached the Debts Recovery Tribunal for adjudication of the debts. This Court is not unmindful of the fact that the remedy in winding up before the Debts Recovery Tribunal are different and a secured creditor can also file an application for winding up on account of inability to pay the debts, but having regard to the fact tha....

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....ured or compounded for within three weeks of the receipt of such notice by the company, an adjudication on merits is called for. There is scarcely any discretion available to the company Court to shoo away a creditor at the receiving stage. 4. It needs also to be clarified that since a creditor's petition is heard in two stages in this Court in accordance with the practice recognised in 56 CWN 29 (Bharat Vegetables), the receiving stage is the stage upto the admission and the post-admission or post-advertisement stage is the final stage. Traditionally, the debt and the extent of the debt are assessed before a petition is admitted and the desirability of sending the company into liquidation is considered at the final stage. 5. In this ....

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.... due. If there is any semblance of defence that is put up by the company, the creditor's petition will fail; but that will not affect any previous or subsequent petition under Section 19 of the Act of 1993 in respect of the same claim filed before a Debts Recovery Tribunal. The claim in the two sets of proceedings may be the same, but the adjudication in the company proceedings would not be confined merely to discovering whether the debt was due or the extent thereof, but also whether it would be desirable for the company to be sent into liquidation. 8. There is no doubt that if a creditor knocking at the doors of the company Court is shown to have sufficient security in respect of the debt claimed to be due, the company Court may not ....