Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2020 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (11) TMI 126 - HC - Companies LawTransfer of the captioned company petition under the substituted Section 434 in Companies Act, 2013 - According to the learned Counsel for the opponent, the cases which have not been transferred from the High Court as contemplated in (ii) of third proviso to Section 434 (1)(c) cannot be transferred. - HELD THAT:- Initially only those matters where the petition was not served upon the company, could be transferred; by subsequent amendment, all the petitions pending with the High Court irrespective of the stages, could be transferred. On plain reading of third proviso to Section 434 (1)(c) with fifth proviso which commences with "provided further" persuades this Court to say that the proviso 3(ii) to Section 434 (1)(c) is subject to fifth proviso; and thus on application under the fifth proviso, pending case can be transferred - In the instant case, concededly the financial creditors i.e. bank(secured creditor) has moved the application under Section 7 of the code and the party who would otherwise be treated as operational creditor (unsecured creditors) has invoked the jurisdiction of this Court. In the opinion of this Court, transfer would be in alignment with the object of the amendment and therefore, the application is required to be accepted and the petition being Company Petition No.353 of 2016 is ordered to be transferred to the Tribunal under the Insolvency & bankruptcy Code, 2016. The transfer shall be effected. Oral application by the learned Counsel for the original petitioner to stay this order cannot be accepted having regard to the reasons already assigned by this Court.
|