TMI Blog2018 (9) TMI 1220X X X X Extracts X X X X X X X X Extracts X X X X ..... e has already been taken over by the UCO Bank under the SARFAESI Act, 2002. Clearly the proceedings for winding up of the respondent company are at an initial stage. The other factor which is admitted by learned counsel for the parties is that other than the factory and land at District Rudrapur, Uttrakhand, there is no immovable or worthwhile movable asset of the respondent company. The registered office at Mahipalpur, New Delhi is a tenanted property which has been sealed by the OL. The landlord of the premises is seeking desealing of the suit premises. Thus in the facts and circumstances of this case, it would be in the interest of the creditors that the proceedings are transferred to NCLT and an attempt is made for initiation of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present petition on 23.05.2018 during the pendency of the proceedings filed by the UCO Bank before the NCLT under the Insolvency Code. It is pleaded that the respondent company was enjoying several credit facilities from different banks. There is a consortium of banks whereby the UCO Bank has taken over as the Lead Bank in terms of Letter of Authority of the consortium member dated 21.05.2007. The respondent company is said to owe about ₹ 200 crores plus interest to UCO Bank and the consortium banks in all have to recover about ₹ 800 crores plus interest from the respondent company. It has also been pleaded that the only immoveable assets/properties available with the respondent company is Factory Land and Building at Morad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atter is transferred to NCLT. He submits that the consortium of bank would like to try the insolvency resolution process so that the unit of the respondent under liquidation can be sold as a running unit. 5. The learned counsel for the petitioner has pointed out that the applicant bank has been needlessly lethargic in the matter. The loan account of the respondent company was declared as Non Performing Assets (in short the NPA ) on 01.11.2014. He further submits that e-auction was held by the respondent company on 10.10.2017 but no bid was received. The dues of the petitioner were originally ₹ 5 crores but including the interest it is more than ₹ 10 crores now. He submits that there are no reasons to transfer the proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal and the Tribunal shall dispose of such matters, proceedings or cases in accordance with the provisions of this Act; (b) any person aggrieved by any decision or order of the Company Law Board made before such date may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Company Law Board to him on any question of law arising out of such order: Provided that the High Court may if it is satisfied that the appellant was prevented by sufficient cause from filing an appeal within the said period, allow it to be filed within a further period not exceeding sixty days; and (c) all proceedings under the Companies Act, 1956 (1 of 1956), including proceedings relating t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Insolvency Bankruptcy Code, 2016. The proviso further adds that this court may by an order transfer the winding up proceedings to NCLT. It is clear from a reading of the proviso to Section 434 of the Companies Act, 2013 that the proviso is discretionary and it gives discretion to this court to transfer the matters. However, in my opinion, once an Official Liquidator has been appointed as Provisional Liquidator, normally the matter would not be transferred to NCLT. 11. However, the present winding up petition is at an initial stage. This court on 15.05.2018 had revived the order appointing the OL as the provisional liquidator. The order appointing the OL was originally passed on 07.08.2015 which had been put in abeyance on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to UCO Bank paying the expenses of ₹ 75,000/- which has been incurred by the OL. On payment of the expenses to the OL, the order appointing the OL as the provisional liquidator would stand revoked. Once, the orders are revoked, the proceedings may be transferred to the NCLT. UCO Bank will file with the Registry proof of having made payment of expenses to the OL to enable the Registry of this court to initiate steps for transfer of the proceedings. All issues are left open to be adjudicated upon by the NCLT as per law. 16. The OL will on receipt of the expenses from the applicant will also de-seal the property which was sealed at A-257, Road No.6, Mahipalpur, New Delhi- 110037. If there any records available with the OL, the OL may ..... X X X X Extracts X X X X X X X X Extracts X X X X
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