CA-272 (1) (b)

If Liquidation Process under IBC is completed and the Company is taken over by the Successful Bidder, application u/s 272(1)(e)/271(c) of Companies Act, 2013 cannot be maintained – Union of India Vs. Metkore Alloys and Industries Ltd. – NCLT Hyderabad Bench

In this case, an application is filed u/s 272(1)(e) read with section 271(c) of Companies Act, 2013, read with section 243 of the Companies Act, 1956 read with rule 11 of the NCLT Rules, 2016 seeking winding up of the Metkore Alloys and Industries Ltd.
NCLT Hyderabad Bench held that the company already underwent the process of liquidation and Liquidator was appointed, who declared the successful bidder and had sought for closure of the liquidation process. In similar application, Hyderabad Bench-1 passed an order returning the application therein by observing that the continuation of proceedings against the respondent is impermissible under Law. The application was returned, giving liberty to the applicant after a decision is taken on approval/rejection of the resolution plan in the ongoing CIRP process. The said Bench relied on orders passed by the Hon’ble High Court of Calcutta in Avani Projects & Infrastructures Ltd Vs Ornate Tradcom Pvt.Ltd CA 92 of 2019.
Since in this case, the liquidation process is completed and the company is taken over by the successful bidder, this application cannot be maintained against the CD and is hence dismissed.

If Liquidation Process under IBC is completed and the Company is taken over by the Successful Bidder, application u/s 272(1)(e)/271(c) of Companies Act, 2013 cannot be maintained – Union of India Vs. Metkore Alloys and Industries Ltd. – NCLT Hyderabad Bench Read Post »

If an applicant is not in a position to satisfy on the point of just and equitable ground, the tribunal may refuse to make an order for winding up under Section 271(e) of the Companies Act, 2013 – Rajesh Agrawal Vs. Premier Proteins Ltd. – NCLAT New Delhi

NCLAT affirmed decision of NCLT and held that sub-section (2) of Section 273 clearly indicates that if such petition is filed i.e. petition filed under Section 271(e) read with Section 272 (1)(b) of the New Act, onus is on the applicant to satisfy that there is just and equitable ground for winding up of a company. Meaning thereby that if an applicant is not in a position to satisfy on the point of just and equitable ground, the tribunal may refuse to make an order for winding up.

If an applicant is not in a position to satisfy on the point of just and equitable ground, the tribunal may refuse to make an order for winding up under Section 271(e) of the Companies Act, 2013 – Rajesh Agrawal Vs. Premier Proteins Ltd. – NCLAT New Delhi Read Post »

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