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TMI Blog2023 (7) TMI 1492X X X X Extracts X X X X X X X X Extracts X X X X ..... ication for initiation of corporate insolvency resolution process. From a perusal of the second proviso to Section 434(1)(c) as also the aforesaid judgement it is clear that any matter, which is transferred, is to be dealt with by the NCLT as an application for initiation of Corporate Insolvency Resolution Process (CIRP) process under the IBC, 2016. Thus, it is clarified that the NCLT would have to strictly proceed in accordance with the said provision and treat the petition as an initiation of CIRP process. Application disposed off. - JUSTICE PRATHIBA M. SINGH For the Appellant : Ms. Deepa Sharma, Adv. For the Respondent : Mr. Siddharth Mullick, Adv. for OL. ORDER Prathiba M. Singh, J. (Oral) 1. This hearing has been done through hybrid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 SCC 549 transferred the present petition, to the NCLT vide order dated 25th May, 2022. In the said order, it is clearly recorded that the winding up petition was at a very early stage. 7. Thereafter, the NCLT in its order dated 1st May, 2023 seeks the following clarification. Heard the submissions made by Ld. Counsel for the Petitioner. These are the proceedings which are transferred from the Hon ble High Court. Petitioner is now seeking remedy within the provisions of IBC. Therefore, Petitioner has prayed for grant of time for seeking clarification from the Hon ble High Court as to from what stage the matter has to be entertained by the Tribunal. More particularly whether the resolution process has to be exhausted first or not as IBC env ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation 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 was prevented by sufficient cause from filing an appeal within the said 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 tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Forech India Ltd. v. Edelweiss Assets Reconstruction Co. Ltd. (Civil Appeal No. 818 of 2018, the Hon ble Supreme Court held that once an application for transfer is filed, the High Court must transfer such proceedings to NCLT which will then deal with the same as an application for initiation of corporate insolvency resolution process. The relevant part of the said judgment is as under: 17. The resultant position in law is that, as a first step, when the Code was enacted, only winding up petitions, where no notice under Rule 26 of the Companies (Court) Rules was served, were to be transferred to the NCLT and treated as petitions under the Code. However, on a working of the Code, the Government realized that parallel proceedings in the High ..... X X X X Extracts X X X X X X X X Extracts X X X X
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