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2018 (11) TMI 559 - HC - Insolvency and BankruptcyCorporate insolvency resolution process - revival of a sick company - Held that:- In the present case, creditors of Corporate Debtor have initiated proceedings for winding up of the Company or the Corporate Debtor under Part VII of the Act of 1956 and not for a compromise and making arrangements for reconstruction of the company under Section 391 which is a part of Part VI, Chapter V of the Act of 1956. Although there can be no dispute about the proposition that during the pendency of the winding up proceeding, an application for compromise and making arrangements for rehabilitation of the Company can be filed under Section 391 of the Act of 1956. Leave is granted to continue with the Corporate Insolvency Resolution Process to the extent it is carried out under Chapter II, Part II of the Insolvency and Bankruptcy Code, 2016. All the creditors and also the operational creditors including the workers having preferential claims under Section 529A of the Companies Act, 1956 shall be allowed to submit their respective claims by the Resolution Professional by suitably extending the last date of submission of such claims in accordance with the provisions of the IBC, 2016 and relevant regulations and thereafter the Resolution Professional shall take necessary steps for completion of the resolution process in accordance with law. In case the forum under the IBC of 2016 which is National Company Law Tribunal, fails to revive or successfully implement the resolution plan, this Court seized of the winding up petitions would proceed to deal with these petitions in accordance with law and till then the effect of the order dated 21.3.2017 passed by this Court appointing provisional Official Liquidator is kept in abeyance. All the connected applications are disposed of accordingly. Company Application is also disposed of accordingly.
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