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2023 (2) TMI 951 - AT - Insolvency and BankruptcyInitiation of CIRP - Operational Creditors - non-service of demand notice - Transfer of Winding up Petition - HELD THAT:- It is crystalline clear that the Adjudicating Authority (National Company Law Tribunal, Hyderabad Bench), ought to have treated the proceedings transferred under Section 434 of the Companies Act, i.e. CP No. 311 of 2016, as an Insolvency Petition, under Section 9 of the I & B Code, 2016, and should have assigned an appropriate number. The Petition under Sections 433 and 434 of the Companies Act, 1956, as instituted before the Hon’ble High Court, cannot be treated to be an application under Section 9 of the Code, 2016 in terms of Rule 5 of the Companies (Transfer of Pending Proceedings) Rules, 2016, and the said observation is an incorrect one, especially in the teeth of the Order of the Hon’ble High Court for the State of Telangana in IA No. 1 of 2019 in CP No. 311 of 2016 dated 29.11.2019, which the Adjudicating Authority (Tribunal), is to adhere to in true letter and spirit, without any deviation whatsoever, as opined by this Tribunal. Likewise, the observations of the Adjudicating Authority (Tribunal), in the impugned order dated 30.06.2022, at Paragraph 10, Hence the earlier proceedings, before the Hon’ble High Court, may not be of much significance in the matter before this Tribunal. In any case, even if the matter were considered as transferred from the Hon’ble High Court, it would stand abated, etc., are an incorrect, invalid, and legally untenable one. It is to be remembered that the proceedings to be transferred in Law, are required to be dealt with an Application / Petition, for the Corporate Insolvency Resolution Process, under the I & B Code, 2016, with a mandate that the Adjudicating Authority (NCLT), will provide from the stage, at which, the Proceedings are transferred, as it is from the Hon’ble High Court. Viewed in that perspective, this Tribunal, is of the cocksure opinion that the Adjudicating Authority (Tribunal), has misdirected itself by making observations at Paragraph 9, while passing the impugned order dated 30.06.2022, which are clearly unsustainable, in the eye of Law. Appeal disposed off.
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