TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 1040
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....ed in IA CA/15/2021 in CP/1127/2014. 3. Learned advocate appearing for the appellant submits that, since the dues of the appellant are yet to be paid by the secured creditor, winding up proceedings being CP/1127/2014 should not be transferred to the National Company Law Tribunal. He submits that, the employees of the appellant are still continuing to guard the assets of the company (in liquidation). He points out that, the appellant was engaged by the official liquidator by a letter dated August 31, 2015. From time to time, appellant raised bills on the official liquidator for rendering services. A portion of such bills were paid. As on date, a portion still remains unpaid. Till such time the entire payment is made, the winding up procee....
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....ower Pvt. Ltd. -Vs- Shyam Metalics And Energy Ltd.) and contends that, in terms of the ratio laid down therein, the winding up petition should be transferred. 8. None appears for the official liquidator. 9. A winding-up petition in respect of M. S. Glass Industries Limited now in liquidation was presented being CP/1127/2014 before the High Court. Such winding up petition was admitted by the Court. An order of winding up was passed in respect of such company now in liquidation on August 5, 2015. 10. Official liquidator took possession of the assets of the company (in liquidation). The official liquidator by a letter dated August 31, 2015 appointed the appellant as an agency to provide security guards for protection of the assets of ....
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....aid period, allow it to be filed within a further period not exceeding sixty days; and (c) all proceedings under the Companies Act, 1956 (1 of 1956), including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies, pending immediately before such date before any District Court or High Court, shall stand transferred to the Tribunal and the Tribunal may proceed to deal with such proceedings from the stage before their transfer: Provided that only such proceedings relating to the winding up of companies shall be transferred to the Tribunal that are at a stage as may be prescribed by the Central Government: [Provided further that any party or parties to any procee....
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.... to be dealt with in accordance with provisions of the Companies Act, 1956 and the Companies (Court) Rules, 1959.] (2) The Central Government may make rules consistent with the provisions of this Act to ensure timely transfer of all matters, proceedings or cases pending before the Company Law Board or the courts, to the Tribunal under this section.]" 13. In terms of the provisions of the Insolvency and Bankruptcy Code, 2015, and in view of the amendment introduced to the provisions of the Act of 2013, Companies (Transfer of Pending Proceedings) Rules, 2016 was promulgated. The Transfer Rules of 2016 provided, compulsory transfer of all winding-up proceedings pending before the High Courts to the NCLT at a stage prior to the serv....
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....ar as may be necessary, for the beneficial winding up of the company, and may even sell the company as a going concern. So long as no actual sales of the immovable or movable properties have taken place, nothing irreversible is done which would warrant a Company Court staying its hands on a transfer application made to it by a creditor or any party to the proceedings. It is only where the winding up proceedings have reached a stage where it would be irreversible, making it impossible to set the clock back that the Company Court must proceed with the winding up, instead of transferring the proceedings to the NCLT to now be decided in accordance with the provisions of the Code. Whether this stage is reached would depend upon the facts and cir....
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.... Supreme Court is of the view that, a proceeding for winding-up pending before the High Court is mandatorily required to be transferred to the National Company Law Tribunal, save and except where, the winding-up proceedings reached a stage where it would be irreversible making it impossible to set the clock back. It also notes that so long as no actual sales of the assets of the company takes place, nothing irreversible would be done which would warrant the Company Court staying its hand on a transfer application made to it by a creditor or a party to the proceeding. 22. Applying such ratio of Action Ispat And Power Pvt. Ltd. (supra) in the facts and circumstances of the present case, we find that there is an application by the secured c....