TaxTMI 
TaxTMI 
2021 (4) TMI 260
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....length on 04.02.2021, 09.02.2021 and today, 17.02.2021. All the learned counsels have made detailed submissions about the possibility of transfer of proceedings to the National Company Law Tribunal (NCLT) under the provisions of the Insolvency and Bankruptcy Code, 2016 and the latest judgment of the Hon'ble Supreme Court in the case of Action Ispat and Power Pvt. Ltd. V. Shyam Metalics and Energy Ltd. reported in (2021) 224 Comp Cases 35 (SC) was also placed for our consideration. 2. We have perused that judgment in detail and vide Paragraph-22 of the said judgment, which is quoted below, the conclusion of the Hon'ble Supreme Court in the aforesaid case, after discussing the previous three judgments in (i) Jaipur Metals & Electricals Employees Organization V. Jaipur Metals & Electricals Ltd. reported in (2019) 4 SCC 227, (ii) Forech India Ltd. V. Edelweiss Assets Reconstruction Co. Ltd. reported in 2019 (18) SCC 549 and (iii) M/s. Kaledonia Jute & Fibres Pvt. Ltd. V. M/s. Axis Nirman & Industries Ltd. and Others reported in AIR 2021 SC 32, is that the proceedings of winding-up pending in the High Court under The Companies Act, 2013, can be transferred to the NCLT on the ap....
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....ance with the provisions of the Code. Whether this stage is reached would depend upon the facts and circumstances of each case. 23. In the facts of the present case, the concurrent finding of the Company Judge and the Division Bench is that despite the fact that the liquidator has taken possession and control of the registered office of the appellant company and its factory premises, records and books, no irreversible steps towards winding up of the appellant company have otherwise taken place. This being so, the Company Court has correctly exercised the discretion vested in it by the 5th proviso to section 434(1)(c). Resultantly, civil appeal arising out of SLP (Civil) No.26415 of 2019 stands dismissed. Civil Appeal Nos. 4042-4043 of 2020 (arising out of SLP (Civil) Nos. 2033-2034 of 2020): Given the fact that the matter has been transferred by the High Court to the NCLT to verify the necessary facts and circumstances of the case, after which relief can be given to the appellant herein, we do not find any reason to interfere with the aforesaid order. The appeals are therefore dismissed." 4. The earlier judgments of the Hon'ble Supreme Court, which were discussed and....
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....er Mills Ltd., under Section 29 of the State Financial Corporation Act, 1951, without the permission of the Company Court. 9. However, this submission was disputed Mr. Devang Trivedi, learned counsel appearing for Respondent No.1 - Gujarat State Financial Corporation and Mr. Nandish Chudgar, learned counsel appearing for Respondent No.5 - M/s. Shree Industries Ltd., the Auction Purchaser under section 29 of the State Financial Corporation Act, 1951. He further submits that the Official Liquidator has not yet invited claims of the other creditors, etc. with respect to the wound-up Company, Respondent No.6 - M/s. Ganpathi Pulp and Paper Mills Ltd. 10. In these circumstances, we direct the Official Liquidator of the said Company - M/s. Ganpathi Pulp and Paper Mills Ltd. to produce before us the latest Status Report of the winding-up proceedings of the said Company, along with the copies of the relevant orders passed by this Court, before the next date of hearing and apprise the Court about the stage of the winding-up proceedings, so that an appropriate decision in accordance with paragraph-22 of the judgment of the Hon'ble Supreme Court in the case of Action Ispat and Power Pvt.....
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....ondent No.5 - Shree Industries Ltd. 12. This submission was opposed, initially, by Mr. A.S. Vakil, learned counsel for the Appellants, who are the Guarantors for the loan of Borrower - Ganpati Pulp and Paper Mills Ltd., now in liquidation. He submits that since this interim order, in the form of Status Quo order, is continuing since last about ten years, let the present Letters Patent Appeal be finally decided and till then, the interim order be continued. 13. After hearing the learned counsels and taking a holistic view of the matter, we are of the considered opinion that since the final decision of the matter, either at the hands of this Court or at the hands of the NCLT, even if the proceedings were to be transferred to the NCLT, may take considerably long period from now, no useful purpose will be served by continuing with the aforesaid blanket Status Quo order, which is continuing in this Letters Patent Appeal for the last more than ten years, which, in turn, has not permitted any further negotiations or development or even use of the Assets, as it was informed to us that the production activity of the Respondent No.5 - Shree Industries Ltd. is also stopped for the last 8 - ....