Rajesh Exports Limited Vs Canara Bank (Karnataka High Court)
The Karnataka High Court considered a writ petition seeking to quash proceedings initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016 pending before the NCLT, Bengaluru, and to restrain their continuation.
The respondent raised a preliminary objection to the maintainability of the writ petition, submitting that the insolvency proceedings were already pending before the NCLT and that the petitioner could raise all grievances and contentions before that forum.
The High Court noted that the Section 7 IBC proceedings were admittedly pending before the NCLT. In these circumstances, it held that the proceedings could not be quashed in the writ jurisdiction. The Court observed that if the petitioner had any grievance or defence, it was open to the petitioner to agitate the same before the NCLT in the pending proceedings.
Accordingly, the High Court disposed of the writ petition, declining to quash the pending insolvency proceedings. It also discharged the interim order, if any, and disposed of all pending interlocutory applications.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
Sri. Raghu H.P., counsel for the petitioner appeared in person.
Sri. C. K. Nandakumar, Senior counsel on behalf of Sri. Hemanth R. Rao, counsel for respondent appeared through video conferencing.
