CFL Capital Financial Services Ltd. Vs Official Liquidator And Anr. (Calcutta High Court)
The Calcutta High Court dismissed an appeal challenging an order transferring a pending winding-up petition and a connected application to the National Company Law Tribunal (NCLT), Kolkata under Section 434 of the Companies Act, 2013. The appellant, a creditor of the company in liquidation, argued that no application seeking transfer had been filed by any party and contended that the Company Court could not transfer the winding-up proceedings suo motu. Reliance was placed on Section 434 of the Companies Act, 2013, Rule 5 of the Companies (Transfer of Pending Proceedings) Rules, 2016, and judicial precedents to submit that an application for transfer was mandatory.
The Court examined decisions of the Supreme Court, including Kaledonia Jute and Fibres Pvt. Ltd., Action Ispat and Power Pvt. Ltd., and A. Navinchandra Steels Pvt. Ltd., relating to the transfer of pending winding-up proceedings to the NCLT. It noted that these decisions recognize that pending winding-up proceedings can be transferred unless they have reached an irreversible or irretrievable stage. The Supreme Court had also clarified that a creditor is entitled to seek transfer and that restrictions under the Companies (Transfer of Pending Proceedings) Rules, 2016 do not apply to transfers covered by the proviso to Section 434(1)(c).
