Ziko Private Limited (the Company) was carrying on the business of Readymade Garments manufacturing for selling in the domestic market and also for exports. Due to Covid restrictions during 2020-21, the Company was not a

The facts of the question are similar to the case of Indiabulls Housing Finance Ltd. v. Shree Ram Urban Infrastructure Ltd. Indiabulls Housing Finance Ltd. (Appellant) had initiated corporate insolvency resolution Process against Shree Ram Urban Infrastructure Ltd. (Corporate Debtor) under Section 7 of the Insolvency and Bankruptcy Code, 2016. In the said appeal the NCLAT examined judgments governing the issue to hold that the High Court of Bombay has already ordered for winding-up of corporate debtor, which is the second stage of the proceeding, thus question of initiation of 'Corporate Insolvency Resolution Process' which is the first stage of resolution process against the same Corporate debtor does not arise. While arriving at its judgment, the NCLAT relied on the case of Forech India Pvt. Itd. Vs. Edelweiss Assets Reconstruction Company Ltd. & Anr. , wherein the NCLAT observed that if a Corporate insolvency resolution has started or on failure, if liquidation proceeding has been initiated against the Corporate debtor, the question of entertaining another application under Section 7 or Section 9 against the same very Corporate debtor does not arise, as it is open to the 'Financial Creditor' and the 'Operational Creditor' to make claim before the Insolvency Resolution Professional/ Official Liquidator. The NCLAT further opined that once second stage i.e., liquidation (winding-up) proceedings has already been initiated, the question of reverting back to the first stage of Corporate Insolvency Resolution Process or preparation of Resolution Plan does not arise.