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Issues: (i) Whether the company petition should be transferred to the National Company Law Tribunal after the stay on the insolvency resolution process had been vacated and in light of the earlier binding order. (ii) Whether the objection based on protection of workmen's dues and alleged irreversible steps in liquidation justified retaining the winding up proceedings before the Company Court.
Issue (i): Whether the company petition should be transferred to the National Company Law Tribunal after the stay on the insolvency resolution process had been vacated and in light of the earlier binding order.
Analysis: The basis on which the Company Judge declined transfer no longer survived once the stay granted by the National Company Law Appellate Tribunal was vacated. The transfer issue was also controlled by the earlier order referred to by the Court, which supported transfer of the company petition to the National Company Law Tribunal.
Conclusion: The issue was decided in favour of the appellant, and the impugned order refusing transfer could not be sustained.
Issue (ii): Whether the objection based on protection of workmen's dues and alleged irreversible steps in liquidation justified retaining the winding up proceedings before the Company Court.
Analysis: The objection regarding workmen's rights was treated as academic because no workman had raised the issue and the stage for such consideration had not arisen. The Court also held that the personal properties of guarantors were not property of the company under liquidation, and no irreversible step had been shown in relation to the company's assets. Protection of workmen's dues was noted under Section 529A of the Companies Act, 1956, read with Section 529, and the Court also referred to the protection available under Section 13(9) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 and the limited relevance of Section 53(1)(b) of the Insolvency and Bankruptcy Code, 2016.
Conclusion: The objection was rejected and did not justify retaining the proceedings in the Company Court.
Final Conclusion: The appeal succeeded, the impugned order was set aside, and the company petition was directed to be transferred to the National Company Law Tribunal.
Ratio Decidendi: Once the legal foundation for retaining the winding up proceeding disappears and no substantive, ripe objection is established, transfer to the National Company Law Tribunal cannot be refused on speculative or academic grounds.
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