In Brief
Action Ispat and Power filed a civil appeal against the High Court's order transferring their winding up proceedings (filed by Shyam Metalics for unpaid dues of Rs. 4.55 crore) from the High Court to the National Company Law Tribunal (NCLT). The Company Court had appointed an Official Liquidator who seized the company's assets. The Supreme Court upheld the transfer, holding that the 5th proviso to section 434(1)(c) of the Companies Act vests discretion in courts to transfer winding up proceedings to NCLT even post-admission, provided no irreversible steps have been taken. Since the liquidator had merely seized assets without commencing actual sales, the transfer was permissible to allow the NCLT to explore revival of the company under the Insolvency and Bankruptcy Code, which prioritizes restructuring over liquidation. The appeals were dismissed.
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