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TMI Blog2023 (2) TMI 1283X X X X Extracts X X X X X X X X Extracts X X X X ..... been initiated. It is for this reason that the Court had opined that no effective or irreversible steps had been taken by the OL. In the present case, as noted above, the sale of Company s assets was effected, but the possession could not be transferred to the Auction Purchaser due to acquisition proceedings. Further, as it manifests, possession of the Company s entire plant and machinery presently vests with Pegasus, and its land has been acquired by the Government of Haryana. In the afore-noted backdrop of the case, with no assets available for satisfying dues of the sole creditor Pegasus, the Court is of the opinion that winding-up proceedings have progressed to an irreversible stage, and it would not be beneficial to transfer the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken towards the winding up of the Company, the Court must exercise its discretion vested under the aforesaid provisions and transfer the matter to NCLT. The Insolvency and Bankruptcy Code, 2016 [ IBC ] was enacted to ensure revival of the corporate debtor and prevent a corporate death by liquidation. If the present petition is transferred to NCLT, corporate insolvency process would set in, which would bring the Company back on its feet. IBC is a beneficial legislation and not just a mere recovery tool for the creditors. 3. On the other hand, Mr. Dinkar Singh, counsel for the creditor/ Pegasus Assets Reconstruction Pvt. Ltd. [hereinafter, Pegasus ] firstly questions the locus standi of the Applicant and alleges that he is not a shareholde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or, vide order dated 08th December, 2004. 4.3. On 24th January, 2005, direction was issued to Allahabad Bank to issue sale proclamation and invite bids from the public. However, since SDM, Sonepat had placed locks on the Company s property, Allahabad Bank was unable to proceed with the sale. Thus, on 14th July, 2005, the Court ordered SDM to remove the said locks and redirected issuance of sale proclamation. 4.4. Pursuant to the above-noted, three bids were received by Allahabad Bank and five were received in the Court, of which the bid of PP Homes and Infrastructure Private Limited [hereinafter, Auction Purchaser ] was accepted on 29th September, 2005. 4.5. Despite acceptance of the bid, Allahabad Bank could not hand over physical possessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anies Act, 2013, it is clear that several stages are contemplated, with the Tribunal retaining the power to control the proceedings in a winding-up petition even after it is admitted. Thus, in a winding-up proceeding where the petition has not been served in terms of Rule 26 of the Companies (Court) Rules, 1959 at a preadmission stage, given the beneficial result of the application of the Code, such winding-up proceeding is compulsorily transferable to NCLT to be resolved under the Code. Even post issue of notice and pre-admission, the same result would ensue. However, post admission of a winding-up petition and after the assets of the company sought to be wound up become in custodia legis and are taken over by the Company Liquidator, Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceedings. Further, as it manifests, possession of the Company s entire plant and machinery presently vests with Pegasus, and its land has been acquired by the Government of Haryana. In the afore-noted backdrop of the case, with no assets available for satisfying dues of the sole creditor Pegasus, the Court is of the opinion that winding-up proceedings have progressed to an irreversible stage, and it would not be beneficial to transfer the same to NCLT. Mr. Rohatgi also argued that there is a possibility that the land may be de-notified. The Court however cannot decide the application on presumptions which have no basis. The Company has already been wound up; liquidation proceedings have advanced significantly and it is thus not possible to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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