Winding Up proceedings can be transitioned from HC to CIRP

The National Company Law Tribunal, Kolkata Bench, held that even where a company is already under winding-up proceedings before the High Court, the matter can be transitioned into a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016, provided no irreversible steps towards liquidation have been undertaken. 

Observing that the Official Liquidator had remained largely in symbolic possession and no effective liquidation process had commenced, the Tribunal admitted the financial creditor’s application under Section 7 of the IBC, discharged the Official Liquidator, and initiated CIRP against the corporate debtor. 

The ruling reinforces the legislative preference for revival and resolution over liquidation.