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2019 (8) TMI 1841 - HC - Indian LawsSeeking a declaration where the proceeding pending before the Company Law Tribunal are void and non est - seeking a direction to restore the control and superintendence of the Company to the shareholders of the Company, as it stood prior to 29.10.2018 - whether the proceeding initiated by respondent Nos.1 to 3 under the Code are non est and ab initio void? - HELD THAT:- It is well settled in law that when an issue involves a pure question of law, a party need not be relegated to alternative remedy - It is evident that it applies to all the lenders, however, Clause (D) of the Circular which prescribes timelines for large accounts to be referred under the IBC and contains Clauses 8 to 13 are reproduced below for the facility of reference. It is evident that all actions under the Circular dated 12.02.2018 including the actions in which insolvency has been triggered has been struck down by the Circular. It has further been held that consequently, all the cases in which the debtors have been proceeded against the financial creditors under Section 7 of the Code only because of the operation of the impugned Circular, which, being faulted at the very inception are declared to be non est - In the instant case, it may be noticed that Section 7 of the Code confers a statutory right for initiation of Corporate Resolution Process on a financial creditor. The submissions made on behalf of the petitioners that the proceeding initiated by respondents before the Tribunal under the Code are non est and void ab initio cannot be accepted. It is also pertinent to mention here that since the Circular dated 12.02;2018 has already been quashed by the Supreme Court in its entirety, therefore, the contention that whether or not it applies to the case of the petitioners need not be gone into - the petition disposed off.
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