Coordinated company rehabilitation justified transfer of creditor suits to the court hearing related proceedings, avoiding conflicting orders.

Where rehabilitation of a company required coordinated judicial supervision, suits against it could be transferred to the court handling the company proceedings so that all connected matters were considered together. The Court emphasized that a single forum would give a full picture of the company's affairs, support reconstruction efforts, and prevent conflicting orders from different courts. The fact that secured creditors were outside the winding-up proceedings was not treated as decisive against transfer. The transfer was allowed, and the suits pending in the Bombay High Court were moved to the Gujarat High Court.

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Issues: Whether suits filed by secured creditors in one High Court should be transferred to the High Court where company proceedings were pending, in order to enable coordinated consideration of rehabilitation and related proceedings.

Analysis: The Court noted that genuine efforts were being made to salvage the company and that the interests of the workmen were also directly involved. It held that, in the circumstances, reconstruction of the company would be best served if one court dealt with all suits against the company as well as the proceedings under the Companies Act, so that the company court could obtain a full picture of the affairs of the company and avoid conflicting orders from different courts. The fact that secured creditors stood outside the winding-up proceedings was not treated as decisive against transfer.

Conclusion: The transfer application was allowed and the suits pending in the Bombay High Court were ordered to be transferred to the Gujarat High Court.

Final Conclusion: The proceedings were centralized before the company court to facilitate rehabilitation of the company and prevent inconsistent judicial orders.

Ratio Decidendi: Where effective rehabilitation of a company requires coordinated judicial supervision, suits against the company may be transferred so that one court can consider all connected proceedings and avoid conflicting orders.

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