Delhi HC transfers winding up petitions to NCLT under Section 434 of Companies Act 2013

Delhi HC transferred winding up petitions to NCLT under Section 434 of Companies Act, 2013. Court held that proceedings were at nascent stage with only pleadings completed and no substantive orders passed. Following SC precedent in Action Ispat case, HC ruled that non-advanced winding up proceedings should be transferred to NCLT. Registry directed to transfer all petitions and electronic records to NCLT, with parties required to appear before NCLT on specified date.

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Issues Involved:
1. Delay in listing matters post-COVID-19 period.
2. Petitions for winding up of a company due to unpaid commissions.
3. Transfer of winding up proceedings to the National Company Law Tribunal (NCLT).

Summary:
Issue 1: The High Court noted a delay in listing matters post-COVID-19 period and directed the Registry to prepare a complete list of matters for early hearing.

Issue 2: The petitions sought winding up of the Respondent-Company due to unpaid commissions. The Petitioner claimed commissions of 12% of net advertisement sales billing, totaling to specific amounts. Notices were served to the Respondent, and the petitions were filed after completion of pleadings. The Respondent cited disputes in service rendering and cash flow issues.

Issue 3: The Court considered the amendment in the Companies Act, 1956, allowing transfer of winding up proceedings to the NCLT. Citing the Supreme Court's decision in Action Ispat and Power Limited v. Shyam Metalics and Energy Limited, the Court ordered the transfer of the petitions to the NCLT, as the winding up proceedings were at a nascent stage with no substantive orders passed. The NCLT was directed to proceed with the cases in accordance with the law, and parties were asked to appear before the NCLT on a specified date.

This judgment highlights the procedural aspects of listing matters, the dispute over unpaid commissions leading to winding up petitions, and the legal provisions for transferring winding up proceedings to the NCLT based on the stage of the case.

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