2019 (4) TMI 2069 - HC - Companies Law

Validity of 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 - HELD THAT - The Central Government has issued a notification dated 07.12.2016 in respect of transfer of proceedings/cases from the High Court to the NCLT vide notification dated 07.12.2016, which has been issued in exercise of power conferred under sub-sections (1) and (2) of Section 434 of the Companies Act, 2013 (18 of 2013) read with subsection (1) of section 239 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) by framing a rule by the Central Government called The Companies (Transfer and Pending Proceedings) Rules, 2016. Such transfer was challenged before this Court by filing W.P.(C) No.712 of 2017 and this Court stayed such transfer of cases to the NCLT, Kolkata. But, subsequently, due to establishment of National Company Law Tribunal, Odisha, Cuttack Bench, Cuttack, this Court disposed of the writ petition on 20.03.2019 stating that the NCLT, Odisha, Cuttack Bench, Cuttack has been established and, therefore, all company matters be transfer to the NCLT, Odisha, Cuttack Bench, Cuttack. Accordingly, this case stands transferred to the NCLT, Odisha, Cuttack Bench, Cuttack for just and proper adjudication.

Summary

Issues: Transfer of proceedings from High Court to National Company Law Tribunal (NCLT) under the Companies Act, 2013

The judgment delivered by the High Court of Orissa pertains to the transfer of proceedings from the High Court to the National Company Law Tribunal (NCLT) as per the provisions of the Companies Act, 2013. The Companies Act, 2013 mandates the transfer of all proceedings under the Companies Act, 1956, including those related to arbitration, compromise, arrangements, reconstruction, and winding up of companies, to the NCLT. The transfer is subject to the stage of the proceedings as prescribed by the Central Government. The Central Government, exercising its power under the Companies Act, 2013 and the Insolvency and Bankruptcy Code, 2016, issued a notification on 07.12.2016 known as "The Companies (Transfer and Pending Proceedings) Rules, 2016" for the transfer of cases from the High Court to the NCLT. A writ petition (W.P.(C) No.712 of 2017) was filed challenging this transfer, leading to a stay on the transfer to the NCLT, Kolkata. However, with the establishment of the NCLT, Odisha, Cuttack Bench, Cuttack, the High Court disposed of the writ petition on 20.03.2019, directing the transfer of all company matters to the NCLT, Odisha, Cuttack Bench, Cuttack for adjudication. Consequently, the case in question was transferred to the NCLT, Odisha, Cuttack Bench, Cuttack for appropriate resolution and adjudication.