Whether Company Court can suo motu transfer a proceeding relating to winding up to NCLT or can such transfer only be made pursuant to an application by one of the parties? – Abhijeet Projects Ltd. – Calcutta High Court

Hon’ble Calcutta High Court held that:
(i) Unless the court is convinced that the company is to suffer an inevitable corporate death the first choice would to be to make an all out attempt to revive the company and this procedure has been elaborately laid down in IBC. The Companies Act, 2013 is not suited for such situation.
(ii) The Court has discretion to transfer the proceeding depending upon the stage of the proceeding. If it appears to the Company Court that the die is cast and the corporate death of the company is inevitable there is no requirement to transfer such proceeding.
(iii) The said discretion is not always dependent upon any formal application being made but it is always desirable that the views of the petitioning creditor, secured creditors and the official liquidator are ascertained.

Whether Company Court can suo motu transfer a proceeding relating to winding up to NCLT or can such transfer only be made pursuant to an application by one of the parties? – Abhijeet Projects Ltd. – Calcutta High Court Read Post »