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Supreme Court of India 2020-12-15 dismissed

Action Ispat and Power Pvt. Ltd vs Shyam Metalics and Energy Ltd

Bench: 3 — R.F. Nariman

In Brief

In this civil appeal, the Supreme Court examined whether a winding up petition admitted by the High Court with an Official Liquidator appointed could be transferred to the National Company Law Tribunal (NCLT). The Court held that even post-admission of a winding up petition, discretion exists to transfer proceedings to the NCLT under the 5th proviso to section 434(1)(c) of the Companies Act, 2013, provided no irreversible liquidation steps have been taken. Since the Official Liquidator had only seized assets but not conducted actual sales, transfer was permissible. The Court emphasised that the Insolvency and Bankruptcy Code prioritises corporate revival over liquidation and overrides conflicting Company Court provisions. The appeals were dismissed.

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Insolvency and Bankruptcy Code Corporate Insolvency Resolution Process Winding Up of Companies Transfer of Proceedings NCLT Jurisdiction Company Liquidation Creditors' Rights Corporate Revival

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