Transitional protection of pending winding up proceedings preserved District Judge jurisdiction despite the later Companies Act threshold.

Transitional provisions preserving pending proceedings sustained the District Judge's jurisdiction to continue a winding up matter instituted before the Companies Act, 1956 came into force. The court treated section 647 as protecting proceedings already pending under the earlier regime, so the later Act did not require transfer to the High Court merely because the company's paid-up capital exceeded the later monetary threshold. The reference was answered by holding that the District Judge could proceed with the winding up action commenced before the new Act.

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Issues: Whether the District Judge retained jurisdiction to continue winding up proceedings that had commenced before the Companies Act, 1956 came into force, by virtue of section 647 of the Companies Act, 1956.

Analysis: The reference concerned proceedings for winding up that had already been instituted and were pending before the District Judge when the Companies Act, 1956 commenced. The Court followed the view that the transitional provision preserved the jurisdiction of the court in which such proceedings were already pending, and that the new Act did not require transfer of those proceedings to the High Court merely because the paid-up capital exceeded the monetary threshold under the later law.

Conclusion: The District Judge had jurisdiction to continue the winding up proceedings commenced before the Companies Act, 1956 came into force.

Final Conclusion: The reference was answered by upholding the continuance of the pending winding up proceedings before the District Judge under the old regime.

Ratio Decidendi: Transitional provisions preserving pending proceedings sustain the jurisdiction of the court seised of the matter, unless the later statute expressly requires transfer.

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