Topic

Winding-Up Proceedings

2 articlesLatest September 2026
Section 7 IBC | Continuing Default Creates Fresh Cause of Action Under Section 22 Limitation Act; Winding-Up Pendency No Bar to Admission : NCLAT
Case Law Analysis
|National Company Law Appellate Tribunal

Section 7 IBC | Continuing Default Creates Fresh Cause of Action Under Section 22 Limitation Act; Winding-Up Pendency No Bar to Admission : NCLAT

The NCLAT upheld Section 7 admission, holding that continuing failure to deliver possession generates a fresh cause of action daily under Section 22 Limitation Act. Pendency of High Court winding-up proceedings does not bar NCLT from admitting a corporate debtor. Homebuyers' claims thus survive limitation through continuing default, and IBC initiation isn't stalled by parallel liquidation petitions.

Section 433(e) Companies Act 1956 | Bona Fide Dispute Must Be Proven, Not Merely Asserted, to Stay Winding-Up Petition : Andhra Pradesh HC
Case Law Analysis
|Andhra Pradesh High Court

Section 433(e) Companies Act 1956 | Bona Fide Dispute Must Be Proven, Not Merely Asserted, to Stay Winding-Up Petition : Andhra Pradesh HC

The Andhra Pradesh High Court ruled that a winding-up petition under Section 433(e) of the Companies Act, 1956 can proceed if the debtor admits the debt but fails to substantiate a bona fide dispute, even if the company is commercially solvent. Mere assertions of dispute without effective communication or evidence are insufficient to halt proceedings, reinforcing creditor rights in insolvency disputes.

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