Transfer winding-up proceedings to IBC insolvency adjudication under s.434(1)(c) due to no irreversible liquidation steps

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The HC allowed the application to transfer the winding-up proceeding against the respondent company to the NCLT under s.434(1)(c) of the Companies Act, 2013, concluding that no irreversible steps toward liquidation have occurred (no sale of movable or immovable assets) and that substantial creditor claims remain unresolved. The court exercised its discretionary jurisdiction in line with the IBC's creditor-driven, time-bound insolvency framework, noting the Official Liquidator's ongoing claims scrutiny and depletion of the common pool by preservation costs. Given the absence of irreversible actions and the availability of the IBC mechanism to address creditor interests and alleged fraudulent transactions, transfer for adjudication under the IBC was directed.....