The Financial Creditor initially filed a winding up petition (Company Petition 470/2016) which was later transferred to the NCLT and registered as TP/3(AHM)/2023. Subsequently, the Financial Creditor filed a Section 7 application under the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority (NCLT, Ahmedabad) admitted the Section 7 application, finding that the debt and default were proved. The Corporate Debtor had committed a default exceeding Rs. 1 Lakh. The Corporate Debtor argued that a pending Civil Suit No. 193/2017 should prevent the admission of the Section 7 application. The Appellant contended that the dispute was pending in the Civil Suit. The Adjudicating Authority considered the pending Civil Suit but held that it was not a reason to reject the

The Financial Creditor initially filed a winding up petition (Company Petition 470/2016) which was later transferred to the NCLT and registered as TP/3(AHM)/2023. Subsequently, the Financial Creditor filed a Section 7 application under the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority (NCLT, Ahmedabad) admitted the Section 7 application, finding that the debt and default were proved. The Corporate Debtor had committed a default exceeding Rs. 1 Lakh. The Corporate Debtor argued that a pending Civil Suit No. 193/2017 should prevent the admission of the Section 7 application. The Appellant contended that the dispute was pending in the Civil Suit. The Adjudicating Authority considered the pending Civil Suit but held that it was not a reason to reject the