Omkara Assets Reconstruction Pvt Ltd Vs Sahjun Impex Trading Pvt Ltd (Bombay High Court)
Summary: The Bombay High Court dismissed an appeal filed by Omkara Assets Reconstruction Pvt Ltd challenging the order of the learned Single Judge transferring a winding-up petition to the National Company Law Tribunal (NCLT) under Section 434(1)(c) of the Companies Act, 2013. The Division Bench of A. S. Gadkari and Kamal Khata, JJ., held that an erstwhile financial creditor holding more than 50% of the company’s financial debt was entitled to seek transfer of the winding-up proceedings for revival under the rehabilitative framework of the Insolvency and Bankruptcy Code, 2016 (IBC).
The appeal arose from an order dated 3 February 2026 by which the learned Single Judge allowed an application seeking transfer of the captioned Company Petition to the NCLT. Omkara Assets Reconstruction Pvt Ltd had intervened in the application and objected to the transfer, principally contending that irreversible steps had already been taken in the liquidation proceedings.
The Appellant submitted that the company had been in winding up since 2008 and that its net worth had eroded as early as 1997. It relied upon the Board for Industrial and Financial Reconstruction’s direction under Section 20 of the Sick Industrial Companies (Special Provisions) Act, 1985, asserting that the company was no longer a going concern and lacked functional manufacturing units or operational assets. According to the Appellant, the learned Single Judge had incorrectly applied the test of “corporate death” and treated the possibility of revival as a mere theoretical possibility.
