TaxTMI 
TaxTMI 
2020 (5) TMI 684
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion Process under the Insolvency and Bankruptcy Code, 2016 for speedy and expeditious disposal of the Company petition. The application has been moved in the light of the orders of the Hon'ble Superme Court in its Judgment reported in 2019 (4) SCC 227 "Jaipur Metals and Electricals Employees Organisation Vs. Jaipur Metals and Electricals Ltd.". The appellant herein is the Debenture Trustee of M/s.Hindustan Photo Films Manufacturing Ltd. (hereinafter called "the Company") which is sought to be wound up in the above company petition. 2. The records would reveal that originally 2 petitioning Creditors had filed petitions for winding up the Company in C.P. No.75 of 1993 and C.P.No.21 of 1995. Meanwhile, the BIFR has also sent its recomm....
X X X X Extracts X X X X
X X X X Extracts X X X X
....unsel for the workmen had submitted that the Supreme Court by its order dated 19.02.2018 has dismissed the appeals filed by the Central Government and the Company against the orders passed in the Writ Appeal arising out of the proceedings initiated by the Workmen of the Company. The effect of the dismissal was the Central Government had to pay the 160 workers their dues in accordance with the rules covering the voluntarily retirement. 5. Thereafter, the applicant has filed the above company application. The Company has not filed a Counter but the counsel appearing for the company would submit that since notice has been issued and all parties are before this Court, the Company petition cannot be transferred to the NCLT. The learned Senior....
X X X X Extracts X X X X
X X X X Extracts X X X X
....7. The Third respondent viz. The Government of India represented by the Joint Secretary, Ministry of Heavy Industries, has filed a counter, inter alia, contending that this Court has already accepted the BIFR order of the winding up and therefore, the liquidation of the Company, taking over management and disposal of assets has become a Court supervised process which has to be implemented by the Official Liquidator who is yet to take charge of the Company. They opposed the transfer on the following grounds: (a) There is no possibility of a revival and the Department of the Heavy Industry has approved to implement the VRS scheme for the remaining employees. (b) The company is prepared to hand over the assets to the Official....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bserved as follows: 14. It is clear that under Section 434 as substituted by the Eleventh Schedule to the Code vide notification dated 15.11.2016, all proceedings under the Companies Act, 2013 which relate to winding up of companies and which are pending immediately before such date as may be notified by the Central Government in this behalf shall stand transferred to the NCLT. The stage at which such proceedings are to be transferred to the NCLT is such as may be prescribed by the Central Government. 15. When Rules 5 and 6 of the 2016 Transfer Rules (un- amended) are read, it is clear that three types of proceedings are referred to. Under Rule 5(1), petitions which relate to winding up under clause (e) of Section 433 of the Companies....
X X X X Extracts X X X X
X X X X Extracts X X X X
....hat stage, may, by order, transfer such proceedings to the NCLT. The proceedings so transferred would then be dealt with by the NCLT as an application for initiation of the corporate insolvency resolution process under the Code. It is thus clear that under the scheme of Section 434 (as amended) and Rule 5 of the 2016 Transfer Rules, all proceedings under Section 20 of the SIC Act pending before the High Court are to continue as such until a party files an application before the High Court for transfer of such proceedings post 17.08.2018. Once this is done, the High Court must transfer such proceedings to the NCLT which will then deal with such proceedings as an application for initiation of the corporate insolvency resolution process under ....