1987 (4) TMI 371 - SC - Companies Law

Supreme Court transfers suits for efficient resolution of company's financial issues

The Supreme Court ordered the transfer of three suits from the High Court of Bombay to the Gujarat High Court at Ahmedabad for a comprehensive resolution ... Transfer application for suits pending in the High Court of Bombay to the Gujarat High Court at Ahmedabad - Held that:- It is true that the secured creditors are outside the winding-up proceedings but when the question is one of rehabilitating the company, it is desirable that the company court should have a full and complete picture of the state of affairs of the company and there should be no conflicting orders from different courts in different suits. It is in that view that, in the particular circumstances of this case, we think it is best that the suits now pending in the High Court of Bombay should be transferred to the Gujarat High Court where the proceedings under the Companies Act are pending. The Supreme Court ordered the transfer of three suits filed by secured creditors of a company from the High Court of Bombay to the Gujarat High Court at Ahmedabad. The company, engaged in sheet-glass production, is facing financial difficulties and is under the supervision of a managing committee. The transfer was deemed necessary for a comprehensive resolution of the company's affairs and to avoid conflicting orders from different courts.