Winding Up Petition Transferred to NCLT for Rs. 16 Crore Default; Parties to Appear on Specified Date

The HC ordered the transfer of the winding up petition against the Respondent Company to the NCLT, as the proceedings were not at an advanced stage. The petition involved a default in maintenance charges exceeding Rs.16 crores. Following the Supreme Court's precedent, the HC determined that the case should be resolved under the Code by the NCLT. The parties were instructed to appear before the NCLT on a specified date, and the electronic record of the petition was to be sent to the NCLT within a week.

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Issues involved:
The issue involves seeking winding up of a company due to default in maintenance charges and transfer of winding up proceedings to the National Company Law Tribunal (NCLT) as per the Companies Act, 1956.

Winding up Petition:
The Petitioner filed a petition seeking winding up of the Respondent Company due to default in maintenance charges amounting to over Rs.16 crores. The Respondent had taken possession of office space and parking spaces but failed to pay maintenance charges as per the tender document.

Transfer of Proceedings to NCLT:
The Companies Act, 1956 provides for the transfer of winding up proceedings pending before High Courts to the NCLT. The Supreme Court held in a previous case that winding up proceedings not at an advanced stage should be transferred to the NCLT for resolution under the Code. The current petition, being at a nascent stage with no substantive orders passed, is deemed fit for transfer to the NCLT.

Legal Position on Winding Up Petitions:
The Court examined the legal position in cases where winding up petitions are not at an advanced stage. It was observed that if winding up proceedings have not reached a stage where it would be irreversible, the proceedings should be transferred to the NCLT for resolution in accordance with the provisions of the Code.

Judicial Decision:
Considering the stage of the current petition and the settled law, the Court ordered the transfer of the petition to the NCLT. Parties were directed to appear before the NCLT on a specified date, and the electronic record of the petition was to be transmitted to the NCLT within a week by the Registry.

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