Transfer of winding-up petition to NCLT allowed where no irreversible step had been taken and liquidation expenses were cleared.

A company petition may be transferred to the NCLT under Section 434(1)(c) where the winding-up process has not reached an irreversible stage and the matter remains capable of being dealt with under the insolvency framework. Here, the absence of effective steps after appointment of the Provisional Liquidator, together with the Official Liquidator's no-objection subject to payment of expenses, supported transfer. The company petition was accordingly transferred to the NCLT, subject to clearance of the Official Liquidator's costs.

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Issues: Whether the company petition should be transferred to the National Company Law Tribunal under Section 434(1)(c) of the Companies Act, 2013.

Analysis: The application was considered in the light of the fact that no effective steps had been taken after appointment of the Provisional Liquidator. The Court also noted that the Official Liquidator had no objection, subject to clearance of the expenses incurred in the winding up proceedings. Relying on the principle that transfer is appropriate where the winding up has not reached an irreversible stage, the Court found the case fit for transfer.

Conclusion: The transfer application was allowed subject to payment of the Official Liquidator's expenses, and the company petition was transferred to the NCLT.

Final Conclusion: The proceedings were shifted from the Company Court to the NCLT, with the ancillary costs of the Official Liquidator to be cleared by the petitioner.

Ratio Decidendi: A winding up petition may be transferred to the NCLT where no irreversible step has occurred in the winding up process and the matter remains capable of being adjudicated under the applicable insolvency framework.

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