In Brief
A winding-up petition was filed against Action Ispat seeking relief on outstanding dues. The Company Court admitted the petition and appointed a liquidator. The State Bank of India, a secured creditor, applied to transfer the winding-up petition to the NCLT, citing a pending insolvency application under the Code. The High Court transferred the petition. The Supreme Court upheld the transfer, holding that discretion exists to transfer winding-up proceedings to the NCLT even after admission, provided no irreversible steps have occurred. The Code's provisions override the Companies Act. Since only possession of assets (not actual sales) had occurred, transfer was appropriate to facilitate the Code's objectives of revival over liquidation.
The lawyer headnote and full judgment text are available to registered users.