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Corporate Insolvency Resolution Process under I&B Code is barred if winding up of the corporate debtor already ordered

In Indiabulls Housing Finance Ltd. v. Sree Ram Urban Infrastructure Ltd., it was an admitted fact that the Bombay High Court had already ordered the winding of the corporate debtor. Referring to various judgments, the Tribunal, held that an application for initiation of Corporate Insolvency Resolution Process was not maintainable. The Tribunal observed that winding up order is the second stage and corporate insolvency resolution process is the first. Therefore, the order for initiation of the first stage cannot be passed after order directing the compliance of the second stage had already been issued. As a result, the NCLAT dismissed the company appeal preferred by the appellant.


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