Pendency of Proceedings before NCLT does not Bar Financial Creditors from filing Petition u/s 7: NCLAT rules in favour of ICICI Bank

The National Company Law Appellate Tribunal (NCLAT) ruled that the pendency of proceedings before the NCLT does not bar financial creditors from filing petitions under Section 7 of the Insolvency and Bankruptcy Code (IBC). The case involved ICICI Bank, which had filed a petition for initiating corporate insolvency resolution against a corporate debtor. The NCLAT emphasized that creditors have the right to seek relief under the IBC even if other proceedings are ongoing. This ruling upholds the rights of financial creditors to initiate insolvency proceedings, ensuring they are not hindered by procedural delays in other forums.