In Brief
An employees' union challenged the Rajasthan High Court's refusal to transfer winding-up proceedings to the National Company Law Tribunal (NCLT). The Supreme Court held that the 2018 amendment to Section 434 of the Companies Act allows any party to apply for transfer of winding-up proceedings from the High Court to the NCLT, which must then be treated as a corporate insolvency application under the Insolvency Code. Additionally, an independent financial creditor petition filed under Section 7 of the Code is admissible by the NCLT despite pending winding-up proceedings, as the Code's provisions override inconsistent laws. The judgment set aside the High Court's order and allowed the appeal.
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