2026 (1) TMI 1168 - HC - Companies Law

Transfer of registry funds to Settlement Account under Scheme of Arrangement permitted to facilitate settlement of creditor and investor claims.

Application sought transfer of Rs. 84 crores with interest from court registry to a Settlement Account under an approved Scheme of Arrangement; the Scheme ... Seeking direction to transfer Rs. 84 crores alongwith accrued interest lying in deposit with the Registry of this Court to the Settlement Account under the Scheme of Arrangement - HELD THAT:- It is found that in the proceedings before the NCLT, the pendency of the present writ petition bearing Criminal Writ Petition No. 2187 of 2015 was divulged along with other pending proceedings and the response of the EOW was also sought while passing the order dated 28.11.2025 by the NCLT. In paragraph 44 of the said order, the NCLT specifically recorded that the EOW as well as the Competent Authority under the Maharashtra Protection of Interest of Depositors (In Financial Establishments) Act, 1999 had supported the scheme although they had certain reservations about pending matters before this Court and the Supreme Court. The sanction of the aforesaid Scheme of Arrangement would not, in any manner, override orders passed by any Court, Tribunal or Authority and that, the same shall happen in accordance with orders that may be passed by such Court, Tribunal or Authority on an application filed in terms of the Scheme - this application is one such application filed in pursuance of the Scheme of Arrangement that appears to have been approved by the NCLT, taking into consideration the interest of all the stakeholders. Having perused the Scheme of Arrangement and the order dated 28.11.2025 passed by the NCLT approving the same, it is found that allowing this application would be in the interest of justice and in furtherance of settlement of the outstanding claims of the creditors / investors. The application and writ petition stands disposed off. Issues: (i) Whether Interim Application (St.) No. 24405 of 2025 seeking transfer of Rs.84 crores with accrued interest from the Registry of the High Court to the Settlement Account under the Scheme of Arrangement approved by the NCLT and consequential disposal of Writ Petition No. 2187 of 2015 should be allowed.Analysis: The Scheme of Arrangement has been approved by the NCLT, which recorded that the sanction of the Scheme shall not override or affect subsisting attachment orders or the continuation of criminal proceedings and envisaged that applications under the Scheme be decided by respective Courts or Authorities. The present application is an application filed pursuant to the approved Scheme seeking transfer of funds deposited in the Registry to the Settlement Account as defined in the Scheme. Allowing the application would give effect to the NCLT-approved Scheme and substantially advance settlement of creditors' and investors' claims. The pendency of related proceedings was disclosed to the NCLT and the State's EOW had been taken into account in the NCLT order. Having regard to the Scheme and the NCLT approval, permitting the registry transfer in accordance with the Scheme serves the interest of justice and furthers the settlement of outstanding claims.Conclusion: Interim Application (St.) No. 24405 of 2025 is allowed in terms of prayer (a); Writ Petition No. 2187 of 2015 is disposed of by quashing and setting aside the Impugned Notice dated 28.02.2015 and directing transfer of Rs.84 crores with accrued interest to the Settlement Account in accordance with the Scheme within the time stipulated.