NCLT (Delhi Bench) : In Miditech Pvt. Ltd.

Petition by Corporate Debtor under Section 10 being complete in all respects and there being a default on its part has to be admitted as contentions raised by the Creditor are not tenable since pendency of proceedings with DRT are no bar to filing and maintaining of Petition.

Where the Petition filed under section 10 by the Corporate Debtor being complete in all respects, and it has committed default, the Petition has to be admitted and cannot be rejected on the claim made by the bank that Petitioner has not come with clean hands and has suppressed the facts that the proceedings are pending before the DRT. It is no longer res integra that pendency of a suit or court proceedings is no bar for initiation of insolvency proceedings under IBC. In view of the overriding effect given by the provisions of Section 238 of IBC, the initiation and pendency of proceedings before DRT is no bar for initiation of resolution and insolvency proceedings under IBC and hence the objections raised by the Bank cannot sustain.

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