Judicial discretion in transfer of winding up proceedings justified refusal where hearing had substantially progressed and insolvency action was uncertain.

The amended transfer provision gives the High Court discretion to transfer pending winding up proceedings, but that discretion must be exercised judicially. Where the winding up petition had already been contested, affidavits exchanged, and the hearing had substantially progressed, and the related insolvency application before the NCLT had not even been listed or admitted, there was no basis to displace the pending proceeding. The request for transfer was therefore rejected.

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Issues: Whether the winding up petition pending in the High Court should be transferred to the National Company Law Tribunal under the amended transfer provision and the relevant transfer rules.

Analysis: The transfer provision confers discretion on the High Court to allow or reject an for transfer of pending winding up proceedings. That discretion must be exercised judicially. The winding up petition had already been contested, affidavits had been exchanged, and hearing had substantially progressed. The related application under Section 7 of the Insolvency and Bankruptcy Code, 2016 before the National Company Law Tribunal had not yet been listed or admitted, so there was no certainty that insolvency proceedings would in fact commence there. In these circumstances, the Court found no justification to displace the pending winding up proceedings by transfer.

Conclusion: The request for transfer was not allowed and the application was rejected.

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