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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ARIF S.DOCTOR
In the matter between KSL & Industries Ltd. – Appellant
Versus
Patheja Forgings & Auto Parts Manufacturing Ltd. – Respondent
| Table of Content |
|---|
| 1. applicant seeks winding-up transfer to nclt under ibc (Para 1 , 2 , 3) |
| 2. transfer unless irreversible winding-up or corporate death (Para 4 , 5) |
| 3. limited ol steps, no corporate death stage (Para 6 , 7 , 8 , 9 , 10) |
| 4. ol possession constitutes irreversible steps (Para 11 , 12 , 13) |
| 5. transfer prejudices workmen dues under ibc (Para 14 , 15) |
| 6. applicant unclean hands by suppressing facts (Para 16 , 17 , 18 , 19) |
| 7. assets sold, irreversible stage per precedents (Para 20 , 21 , 22 , 23 , 24) |
| 8. applicant disentitled due to laches and conduct (Para 25 , 26 , 27) |
| 9. ibc waterfall is legislative policy, no prejudice (Para 28 , 29 , 30 , 31) |
| 10. no irreversible stage; ibc prevails over bifr (Para 32 , 33 , 34) |
| 11. transfer mandated absent corporate death; ibc primacy (Para 35) |
| 12. company application allowed; proceedings transferred (Para 36 , 37) |
JUDGMENT :
ARIF S. DOCTOR, J
1.The Applicant has, by way of the present Company Application, sought the transfer of the captioned Company Petition to the National Company Law Tribunal (“NCLT”) Mumbai under the provisions of Section 434(1)(c) of the Companies Act, 2013 (“the Companies Act”).
Submissions on behalf of the Applicant:
2. Mr.
Transfer winding-up to NCLT unless 'corporate death' inevitable; sales by secured creditors outside proceedings or limited liquidator steps (asset possession, claims verification) do not bar transfer....
Transfer winding-up to NCLT under Companies Act s.434(1)(c) unless irresistible corporate death; secured creditor asset sales outside winding-up not bar; IBC resolution primacy over liquidation despi....
The main legal point established in the judgment is the obligation to transfer winding-up proceedings to the NCLT in the absence of irreversible or exceptional circumstances, as per the amended Secti....
The discretion to transfer winding up proceedings to NCLT under Section 434(1)(c) of the Companies Act must prioritize potential corporate revival, and no irreversible actions should have occurred.
A winding-up petition can be transferred to the NCLT without a formal application if no irreversible steps have been taken in the liquidation process.
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