2019 (5) TMI 604 - Tri - Companies Law

Transfer of winding-up petition from High Court to National Company Law Tribunal dismissed due to procedural failures and lack of evidence.

The case involved the transfer of a winding-up petition from the High Court to the National Company Law Tribunal. The petitioner failed to serve statutory ... Winding up of respondent-company M/s. Indiaontime Express P. Ltd. - appointment of official liquidator attached with the hon'ble High Court of Karnataka, etc. - HELD THAT:- Considering the submission made by the petitioner-counsel as also the fact as stated in the petition, it seems that the corporate debtor has not entered into any manpower supply contract with the operational creditor nor the corporate debtor has placed any purchase order/supply order as also the operational creditor is even unable to locate corporate debtor or its director, the case is not ripe to be taken up under sections 8 and 9 of the Insolvency and Bankruptcy Code, 2016. Moreover the petitioner has even failed to comply with the National Company Law Tribunal, Bangalore Bench order dated July 20, 2018 vide which the Tribunal allowed I. A. No. 187 of 2018 granting prayer for paper publication. The petitioner failed to substantiate the impugned amount with proper evidence. The efforts made by the petitioner to serve the notice failed, even though the Tribunal ordered to serve notice to the respondent. Moreover the claim itself is not proved and the prima facia barred by the law of limitation. This is not a fit case to be admitted and is liable to be rejected - petition dismissed. Issues Involved:1. Transfer of case to National Company Law Tribunal from High Court for winding up petition.2. Failure to serve statutory notice and demand notice under Insolvency and Bankruptcy Code.3. Dispute regarding outstanding dues and failure to provide proper evidence.4. Failure to comply with Tribunal orders for paper publication and lack of evidence for initiating insolvency resolution process.5. Jurisdictional issues and limitations under the law.Issue 1: Transfer of Case to National Company Law TribunalThe judgment discusses the transfer of a winding-up petition case from the High Court to the National Company Law Tribunal. The petitioner sought to wind up the respondent company under the Companies Act, 1956. The case was renumbered and listed before the Tribunal after being transferred from the High Court. The Tribunal granted permission for paper publication as requested by the petitioner.Issue 2: Failure to Serve NoticesThe petitioner failed to serve statutory and demand notices to the respondent, facing challenges in locating the respondent's address and directors. Despite various attempts, including registered post and email notices, service was unsuccessful. The Tribunal noted the failure to comply with orders for paper publication and the inability to serve notices as required under the Insolvency and Bankruptcy Code.Issue 3: Dispute Over Outstanding DuesThe petitioner claimed outstanding dues from the respondent but failed to substantiate the amount with proper evidence. The invoices presented lacked supporting documentation, and the petitioner could not establish a valid manpower supply contract or purchase order. The Tribunal found the claim not proven and potentially barred by the law of limitation.Issue 4: Compliance and Evidence for Insolvency ResolutionThe Tribunal highlighted the petitioner's failure to comply with orders for paper publication and the lack of evidence supporting the initiation of corporate insolvency resolution process. It was observed that the case was primarily focused on recovering outstanding dues rather than initiating insolvency proceedings. The judgment emphasized that the Insolvency and Bankruptcy Code cannot replace recovery proceedings, as established by Supreme Court decisions.Issue 5: Jurisdictional Challenges and LimitationsThe Tribunal concluded that due to the lack of evidence, failure to serve notices, and jurisdictional challenges, the case was not suitable for admission under the Insolvency and Bankruptcy Code. The judgment dismissed the petition, stating that it was not a fit case for admission, while allowing the petitioner to seek other remedies under different laws. No costs were awarded in this matter.This detailed analysis of the judgment provides insights into the issues related to the transfer of the case, failure to serve notices, disputes over outstanding dues, compliance issues for insolvency resolution, and jurisdictional challenges faced in the legal proceedings.