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TMI Blog2020 (5) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... winding up cannot be countenanced. Once the petition is received from the BIFR it is thereafter numbered as a Company Petition and the entire procedure envisaged for a winding up proceedings has to be followed to the letter. Further the creditors and contributories of the company are also to be paid their dues first as the case of the Workmen. Reliance placed in Jaipur Metals and Electricals Employees Organisation Vs. Jaipur Metals and Electricals Ltd [ 2018 (12) TMI 674 - SUPREME COURT ], where it was was dealing with the order passed by the High Court of Judicature of Rajasthan refusing to transfer winding up proceedings pending before it to the National Company Law Tribunal (NCLT) and further setting aside the order dated 13.04.2018 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 recommendation dated 30.01.2003 in case No.503 of 1995 for winding up the company and the same has been numbered as C.P.No.114 of 2003. The records would reveal that C.P.No.75 of 1993 was admitted by order of this Court dated 10.11.1995. 3. The notes of the order would further show that on 08.09.2017, this Court had passed the following orders. The learned Counsel for the workmen, who represented on behalf of the applicant, has stated that the winding up of the Company by the Board for Industrial and Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 Counsel appearing on behalf of the workmen would contend that the only order to be made in the company petition is the order of winding up and at this juncture, the filing of the petition was a retrograde steps. She would however, concede that as regards the amounts due to the workmen, the Central Government by orders of this Court in a writ proceeding, as confirmed by the Hon'ble Supreme Court was bound to pay the 160 workmen of this Company. 6. The Official Liquidator has filed a report dated 21.11.2019 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Liquidator. (c) 16 years have elapsed since BIFR recommended for closure and the matter has reached the final stage of winding up and the Official Liquidator asked to take charge of the Company by orders of this Court dated 08.09.2017. (d) Transferring at this Stage will once again push back the entire process to the start and any gains made in the interregnum would be set at naught. The counsels for the respondents have not addressed the impact of the Judgment in the Jaipur Metals Case extensively though the present application has been fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended) 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 Act, 1956 on the ground of inability to pay debts that are pending before the High Court are to be transferred to the NCLT in case the petition has not been served on the respondent. They shall then be treated as applications under Sections 7, 8, or 9 of the Code and dealt with in accordance with Part II of the Code. Similarly, all petitions filed under clauses (a) and (f) of Section 433 of the Companies Act, 1956 pending before the High Court, in which the petition has not been served on the respondents, shall be transferred to the NCLT. Only such petitions will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt 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 the Code. The Bench has in the above para carved out an exception to the winding up cases falling under Sec 20 of the SICA 11. The Language of this Judgment is therefore, emphatic and imperative that as a rule all proceedings under Section 20 of the SICA pending before the High Court shall continue to be heard by the High Court. However, if any party files an application to transfer such proceedings to the NCLT post 17.08.2018, the High Court is left which no other alternative but to transfer the proceedings. 12. In the instant case, the proceeding is only a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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