JAIPUR METALS AND ELECTRICALSEMPLOYEES ORGANIZATION THROUGH GENERAL SECRETARY; MR. TEJ RAM MEENA vs JAIPUR METALS AND ELECTRICALS LTD. THROUGH ITS MANAGING DIRECTOR

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2018 Supreme(SC) 1247

ROHINTON FALI NARIMAN, M.R.SHAH
JAIPUR METALS AND ELECTRICALSEMPLOYEES ORGANIZATION THROUGH GENERAL SECRETARY; MR. TEJ RAM MEENA – Appellant
Versus
JAIPUR METALS AND ELECTRICALS LTD. THROUGH ITS MANAGING DIRECTOR – Respondent

Advocates Appeared:
For the Appellant : Mr. Sidharth Luthra, Mr. Sayantam Talapatra, Mr. Pankaj Singhal, Ms. Anushree Prashit Kapadia, Advs.
For the Respondent: Mr. Tarun Gupta, Mr. P. Chidambaram, Sr. Ms. Ashu Kansal, Mr. Karan Batura, Mr. T. V. S. Raghavendra Sreyas, Mr. Nikhil Nayyar, Ms. Garima Bajaj, Mr. Amit Sharma, Mr. Ankit Raj, Ms. Nidhi Jaswal, Ms. Ruchi Kohli, Mr. Siddhartha Dave, Mr. Rishi Matoliya, r. Rahul Pratap, Mr. Surya Kant, Mr. Pranav Vyas, Mrs. Priyanka Tyagi, Advs.

JUDGMENT

R.F. Nariman, J.

Leave granted.

2. The present appeal has been filed by an employees' union challenging the judgment of the High Court of Judicature for Rajasthan dated 01.06.2018, in which the High Court has refused to transfer winding up proceedings pending before it tothe National Company Law Tribunal ("NCLT"), and has set aside an order dated 13.04.2018 of the NCLT by which order a financial creditor's petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 ("Insolvency Code" or "Code") has been admitted.

3. This case has had a chequered history. On 30.09.1997, the account of the Respondent No. 1 company had become a non-performing asset, and since the company's net worth had turned negative, a reference was made to the Board for Industrial and Financial Reconstruction ("BIFR") under the Sick Industrial Companies (Special Provisions) Act, 1985 ("SIC Act"). On 26.09.2002, the BIFR was of the prima facie opinion that the company ought to be wound up, which opinion was forwarded to the High Court. The High Court ultimately registered the case as Company Petition No. 19/2009. The Alchemist Asset Reconstruction Company Ltd. (Respondent No. 3) acquired substantially

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2018 Supreme(SC) 1247

ROHINTON FALI NARIMAN, M.R.SHAHJAIPUR METALS AND ELECTRICALSEMPLOYEES ORGANIZATION THROUGH GENERAL SECRETARY; MR. TEJ RAM MEENA – AppellantVersusJAIPUR METALS AND ELECTRICALS LTD. THROUGH ITS MANAGING DIRECTOR – Respondent

ROHINTON FALI NARIMAN, M.R.SHAH
JAIPUR METALS AND ELECTRICALSEMPLOYEES ORGANIZATION THROUGH GENERAL SECRETARY; MR. TEJ RAM MEENA – Appellant
Versus
JAIPUR METALS AND ELECTRICALS LTD. THROUGH ITS MANAGING DIRECTOR – Respondent