The provisions of the IBC would have an overriding effect over the Tea Act, 1953 and that no prior consent of the Central Government before initiation of the proceedings under Section 7 or Section 9 of the IBC would be required – Duncans Industries Ltd Vs. A. J. Agrochem – Supreme Court
The AA rejected an application under section 9 on the ground that the provisions of the Code are not applicable unless the OC seeks consent of the Central Government, in view of section 16G(1)(c) of the Tea Act, 1953, which provides that no proceeding for winding up can be initiated except with the consent of the Central Government. The NCLAT allowed an appeal against the said order holding that no permission of the Central Government is required for initiation of CIRP of the CD. The SC upheld the NCLAT judgment holding that the CIRP cannot be equated with winding up proceedings and hence no prior consent of the Central Government would be required for initiation of the proceedings under section 7 or 9.
