Swaraj Infrastructure Pvt. Ltd. v. Kotak Mahindra Bank Ltd. (Civil Appeal No. 1291 of 2019) - Synopsis
Team SoOLEGAL 26 Oct 2020

Here, in this case, Swaraj Infrastructure Pvt. Ltd. v. Kotak Mahindra Bank Ltd. (Civil Appeal No. 1291 of 2019) the main fact is that the respondent company had received a recovery certificate against the petitioner company from Debt Recovery Tribunal, Mumbai. But there were no results from various attempts to sell the protected properties. Hence, the respondent company filed a winding-up petition and that petition was admitted by Bombay High Court. Being aggrieved, the appellant company had appealed before the Division Bench of Bombay High Court against the admission of the winding-up petition. According to the appellant, after receiving the recovery certificate, the secured creditor cannot file a winding-up petition. However, the Division Bench of Bombay High Court had rejected the application of the appellant.  Being aggrieved by the decision of the Division Bench, the appellant filed an appeal in Supreme Court.
Supreme Court held that even if the recovery certificate has been received from Debts Recovery Tribunal, the secured creditor that is the respondent has the right to file a winding-up petition against the petitioner. The respondent company can initiate the winding-up process even after receiving the recovery certificate. 

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