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TMI Blog2018 (9) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... k as a party in the present company petition. CA No.742/2018 is also filed by the UCO Bank seeking transfer of this petition under section 434 of the Companies Act, 1956 to the NCLT. 2. The learned counsel appearing for the applicant/UCO Bank states that they come to know about the pendency of the present petition on 23.05.2018 during the pendency of the proceedings filed by the UCO Bank before the NCLT under the Insolvency Code. It is pleaded that the respondent company was enjoying several credit facilities from different banks. There is a consortium of banks whereby the UCO Bank has taken over as the Lead Bank in terms of Letter of Authority of the consortium member dated 21.05.2007. The respondent company is said to owe about Rs. 200 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a precaution an application for impleadment has been filed. This court may implead the applicant UCO Bank as a party in the present petition. He has reiterated that given the magnitude of debt owed to the consortium of bank, it would be in the interest of the creditors that this matter is transferred to NCLT. He submits that the consortium of bank would like to try the insolvency resolution process so that the unit of the respondent under liquidation can be sold as a running unit. 5. The learned counsel for the petitioner has pointed out that the applicant bank has been needlessly lethargic in the matter. The loan account of the respondent company was declared as Non Performing Assets (in short the 'NPA') on 01.11.2014. He further submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng before the Board of Company Law Administration (herein in this section referred to as the Company Law Board) constituted under sub-section (1) of section 10E of the Companies Act, 1956 (1 of 1956), immediately before such date shall stand transferred to the Tribunal and the Tribunal shall dispose of such matters, proceedings or cases in accordance with the provisions of this Act; (b) any person aggrieved by any decision or order of the Company Law Board made before such date may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Company Law Board to him on any question of law arising out of such order: Provided that the High Court may if it is satisfied that the appellant w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal under this section." 10. As per the proviso any party or parties to the proceedings relating to the winding up of companies may file an application for transfer of such proceedings to the NCLT which will be dealt with by the Tribunal under Insolvency & Bankruptcy Code, 2016. The proviso further adds that this court may by an order transfer the winding up proceedings to NCLT. It is clear from a reading of the proviso to Section 434 of the Companies Act, 2013 that the proviso is discretionary and it gives discretion to this court to transfer the matters. However, in my opinion, once an Official Liquidator has been appointed as Provisional Liquidator, normally the matter would not be transferred to NCLT. 11. However, the present winding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also allow CA No. 741/2018 and implead UCO Bank as a party to the present company petition. 15. The order appointing the OL as the provisional liquidator initially passed on 07.08.2015 and revived on 15.05.2018 is revoked subject to UCO Bank paying the expenses of Rs. 75,000/- which has been incurred by the OL. On payment of the expenses to the OL, the order appointing the OL as the provisional liquidator would stand revoked. Once, the orders are revoked, the proceedings may be transferred to the NCLT. UCO Bank will file with the Registry proof of having made payment of expenses to the OL to enable the Registry of this court to initiate steps for transfer of the proceedings. All issues are left open to be adjudicated upon by the NCLT as p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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