TMI Blog2023 (10) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... of proceedings pending before High Courts relating to winding to the NCLT has been provided in Section 434 of the Companies Act, 2013. The Supreme Court in ACTION ISPAT AND POWER PVT. LTD. VERSUS SHYAM METALICS AND ENERGY LTD. [ 2020 (12) TMI 535 - SUPREME COURT ], has held that winding up proceedings which have not reached an advanced stage ought to be transferred to the National Company Law Tribunal (NCLT). In the opinion of this Court, since hardly any proceedings have been taken towards winding up of the company, the petition no longer deserves to be continued before this Court. The petition is itself at the very nascent stage and no substantive orders have been passed towards winding up of the company. Accordingly, in view o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13 CO.PET.-451/2013 6. The present petitions have been filed seeking winding up of the Respondent-Company-B.A.G. Glamour Limited. The case of the Petitioner is that an agreement was entered into for advertising related services with the Respondent on 22nd April, 2010. The Respondent was appointed as an exclusive representative for selling available advertising options for different channels. The Petitioner s case is that it was entitled to a commission of 12% of the net advertisement sales billing. It is the case of the Petitioner that the commissions which were due to the Petitioner are stated to have not been paid by the Respondent. The amounts claimed in the petitions are under:- S. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p petition is at a nascent stage and no proceedings have been taken after the issuance of notice in these petitions. Only pleadings have been completed. In the meantime, the Companies Act, 1956 has been amended and a provision has been enacted for transfer of winding up proceedings pending before the High Courts. Transfer of proceedings pending before High Courts relating to winding to the NCLT has been provided in Section 434 of the Companies Act, 2013. The said provision reads as under: 434. Transfer of certain pending proceedings (1) On such date as may be notified by the Central Government in this behalf,- (a) all matters, proceedings or cases pending before the Board of Company Law Administration (herein in this section refe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... winding-up, for which orders for allowing or otherwise of the proceedings are not reserved by the High Courts shall be transferred to the Tribunal [Provided also that]- (i) all proceedings under the Companies Act, 1956 other than the cases relating to winding up of companies that are reserved for orders for allowing or otherwise such proceedings; or (ii) the proceedings relating to winding up of companies which have not been transferred from the High Courts; shall be dealt with in accordance with provisions of the Companies Act, 1956 and the Companies (Court) Rules, 1959.] Provided also that proceedings relating to cases of voluntary winding up of a company where notice of the resolution by advertisement has been given und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the business of the company, so far as may be necessary, for the beneficial winding up of the company, and may even sell the company as a going concern. So long as no actual sales of the immovable or movable properties have taken place, nothing irreversible is done which would warrant a Company Court staying its hands on a transfer application made to it by a creditor or any party to the proceedings. It is only where the winding up proceedings have reached a stage where it would be irreversible, making it impossible to set the clock back that the Company Court must proceed with the winding up, instead of transferring the proceedings to the NCLT to now be decided in accordance with the provisions of the Code. Whether this stage is reache ..... X X X X Extracts X X X X X X X X Extracts X X X X
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