9911796707
TMI Blog2025 (1) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... ng substantial could be achieved towards liquidation of the available assets of debtor company, this Court on the suggestions of stake holders ordered a meeting of Department of State Excise, official Liquidator and Bank of India (lead bank for consortium of creditors). Eventually, the creditors arrived at consensus and this Court passed an order dated 02.08.2019 authorizing Excise and Taxation Department of the State to conduct sale proceedings on the assets of debtor company. In ACTION ISPAT AND POWER PVT. LTD. VERSUS SHYAM METALICS AND ENERGY LTD. [ 2020 (12) TMI 535 - SUPREME COURT ], the power of Company Court to transfer the matters before it dealing with winding up of the companies to NCLT under Section 434(1) (c) of Companies Act, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in Co. Application No.25 of 2016. Ms. Sunita Sharma, Senior Advocate with Mr. Dhananjay Sharma, Advocate, for respondent No.6. Mr. Vijay Kumar Arora, Senior Advocate with Ms. Godavari, Advocate, for respondent No.7. Mr. Rahul Mahajan, Advocate, for the Employees Provident Fund. Mr. Vijay Kumar Sharma, Advocate, for respondent No.8 in Co. Petition NO.13 of 2014. Mr. Rajesh Prakesh, Advocate, for Dhanlaxmi bank in Co. Application No.28 of 2018. Mr. Shrawan Dogra, Senior Advocate with Mr. Manik Sethi, Advocate, for the applicants in Co. Applications No.10, 11 and 12 of 2023. Mr. Sunil Mohan Goel, Senior Advocate with Mr. Paras Dhaulta, Advocate, for the petitioner in Co. Petition No.4002 of 2013. Mr. Arvind Sharma, Advocate, for the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted as Liquidator for the purposes of management and disposal of assets and liabilities of respondent No.1-company, but till date the required results have not been achieved. 5. I have heard the learned counsel for the parties and have also perused the record. 6. This Court passed the winding up order on 21.09.2015 and the Liquidator was appointed. Since, nothing substantial could be achieved towards liquidation of the available assets of debtor company, this Court on the suggestions of stake holders ordered a meeting of Department of State Excise, official Liquidator and Bank of India (lead bank for consortium of creditors). Eventually, the creditors arrived at consensus and this Court passed an order dated 02.08.2019 authorizing Excise a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el proceedings would continue under both statutes, leading to a most unsatisfactory state of affairs. This led to the introduction of the 5th proviso to section 434(1)(c) which, as has been correctly pointed out in Kaledonia (supra), is not restricted to any particular stage of a winding up proceeding. (14.4) Therefore, what follows as a matter of law is that even post admission of a winding up petition, and after the appointment of a Company Liquidator to take over the assets of a company sought to be wound up, discretion is vested in the Company Court to transfer such petition to the NCLT. The question that arises before us in this case is how is such discretion to be exercised? 25. Given the aforesaid scheme of winding up under Chapter X ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the NCLT to now be decided in accordance with the provisions of the Code. Whether this stage is reached would depend upon the facts and circumstances of each case. 9. Thus, this Court is having the jurisdiction to transfer Company Petition No.13 of 2014 to NCLT subject, however, to a condition that the winding up proceedings have not reached a stage where it would be irreversible, making it impossible to set the clock back. 10. Looking into the facts, as noticed above, partial sales of the assets of debtor company have already been made. Noticeably, the third party rights (auction purchaser) have come into being. There are pending issues with respect to confirmation of sales already effected. 11. In Action Ispat (supra), the irreversibilit ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
