(1)
M/S. SHANTI CONDUCTORS(P) LTD. AND ANOTHER WITH M/S. TRUSSES AND TOWERS (P) LIMITED ... Vs.
ASSAM STATE ELECTRICITY BOARD AND OTHERS ........Respondent D.D
23/01/2019
Facts: The case involves a dispute regarding the applicability of the Interest on Delayed Payment to Small Scale Ancillary Industrial Undertakings Act, 1993, when the contract for supply was entered into before the enforcement of the Act on September 23, 1992. The central issue revolves around the retrospective operation of the Act.Issues:Whether the Act is applicable when the contract for supply ...
(2)
STATE OF HIMACHAL PRADESH ... Vs.
PINJU RAM ........Respondent D.D
22/01/2019
Facts:On February 27, 2004, the Chief Secretary to the Government of Himachal Pradesh communicated a policy for regularizing part-time class-IV employees with certain conditions.Some part-time employees moved the Himachal Pradesh Administrative Tribunal seeking regularization.The Tribunal and High Court directed the State Government to provide daily wage employment to eligible part-time employees....
(3)
NEW DELHI MUNICIPAL COUNCIL ETC ... Vs.
ASSOCIATION OF CONCERNED CITIZENS OF NEW DELHI AND OTHERS ETC. ETC. ........Respondent D.D
22/01/2019
Facts: The case involved writ petitions challenging the constitutional validity of the 2009 Bye-Laws of the New Delhi Municipal Council (NDMC). The impugned Bye-Laws introduced the Unit Area Method (UAM) for determining the rateable value, deviating from the previous method based on annual rent.Issues: The constitutionality of the UAM in fixing the annual value, with the respondents contending it ...
(4)
NAGPUR IMPROVEMENT TRUST AND OTHERS Vs.
M/S BOMBAYWALA AND OTHERS ........Respondent D.D
22/01/2019
Facts: The Abhyankar Road Widening and Buty Mahal Street Scheme, framed under the Nagpur Improvement Trust Act in 1960, included a provision for a 15-meter internal road. Subsequently, the Development Plans under the Maharashtra Regional Town Planning Act (MRTP Act) did not incorporate this 15-meter road. The Nagpur Improvement Trust (NIT) decided to implement the scheme, leading to legal challeng...
(5)
MOHAMMED SALIM (D) THROUGH LRS. AND OTHERS ... Vs.
SHAMSUDEEN (D) THROUGH LRS. AND OTHERS ........Respondent D.D
22/01/2019
Facts: The case involves a dispute over inheritance rights arising from the marriage of a Muslim man (Mohammed Ilias) with a Hindu woman (Valliamma/Souda Beebi). The plaintiff, Shamsudeen, claims legitimacy and inheritance rights, while the defendants argue that the marriage was irregular and, therefore, the plaintiff is not entitled to any share.Issues: The validity of the marriage between Mohamm...
(6)
FORECH INDIA LTD. ... Vs.
EDELWEISS ASSETS RECONSTRUCTION CO. LTD. ........Respondent
Sections, Acts, Rules, and Article mentioned:
Sections 9 and 11: Insolvency and Bankruptcy Code, 2016
Rules 26 and 27: Companies (Court) Rules, 1959
Section 434: Companies Act, 2013
Section 255 of the Code
Section 434 of the Companies Act, 2013 (as substituted in 2018)
Article 238 of the Code
Subject:
Transfer of winding up proceedings from the High Court to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016, and the interpretation of relevant sections, rules, and amendments.
Headnotes:
Facts:
A winding-up petition (No. 42 of 2014) was filed by the appellant before the High Court of Delhi in 2014.
Notice under Rule 26 of the Companies (Court) Rules, 1959, had been served.
Another operational creditor filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (the Code).
Respondent No. 1, a financial creditor, moved the NCLT under Section 7 of the Code in 2017.
The appellant appealed the NCLT's order, arguing the independence of winding-up proceedings.
Issues:
Whether winding up proceedings should continue in parallel with insolvency petitions under the Code.
The interpretation of Rule 26 of the Companies (Court) Rules, 1959.
Applicability of Section 434 of the Companies Act, 2013, and its amendments.
Held:
Rules 26 and 27 pertain to a pre-admission scenario, indicating that notice under Rule 26 is served before the hearing.The expression "was admitted" in Form No. 6 only means that notice has been issued, and the petition is fixed for a hearing. (Para 17)
The statutory scheme evolved with amendments to Section 434, allowing the transfer of winding-up petitions to NCLT even if notice has been served.The objective is to avoid parallel proceedings and resuscitate corporate debtors under the Code.( Para 18)
Citing Jaipur Metals & Electricals Employees Organization case, the Court emphasizes the independent nature of proceedings under Section 7 or Section 9 of the Code.Section 238 of the Code prevails in case of any inconsistency.( Para 19)
Referring to PSL Limited v. Jotun India Private Limited, the Court upholds the applicability of the Code to post-notice winding-up proceedings.( Para 20)
Section 11 of the Code is of limited application and does not bar the filing of an Insolvency Petition until a liquidation order is made against the corporate debtor.( Para 21)
While not interfering with the Appellate Tribunal's order, the appellant is granted liberty to apply under the proviso to Section 434 to transfer the winding-up proceedings to the NCLT.( Para 23)
Referred Cases:
PSL Limited Vs. Jotun India Private Limited, (2018) 2 AIR Bom R 350
Ashok Commercial Enterprises Vs. Parekh Aluminex Limited, (2017) 4 Bom. CR 653
JUDGMENT
Rohinton F. Nariman, J. - The present matter arises from an Operational Creditor's appeal to continue with a winding up petition that has been filed by the said creditor way back in 2014. The facts relevant for disposal of this appeal are as follows:-
2. A winding up petition, being No. 42 of 2014, was filed by the present appellant before the High Court of Delhi on 10.01.2014, against Respondent No. 2-Company, alleging (under Section 433(e) of the Companies Act) inability to pay dues. Notice in this petition had been served, as is recorded by an order dated 20.01.2014 of the High Court of Delhi. Further orders which have been pointed out to us by learned counsel for the appellant, have gone on to state that there is a debt or liability which is, in fact, admitted.
3. It was also pointed out by learned counsel for the appellant that a Reference had been made by the Company itself on 14.07.2015 to the Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies Act, 1985, which, according to the learned counsel for the appellant, has abated as on 11.12.2016. It transpires that another operational creditor, viz., SKF India Ltd. had filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (in short 'the Code'), against Respondent No. 2, which was allowed to be withdrawn so that the aforesaid operational creditor could go to the High Court in a winding up petition which would then be heard along with the Company Petition No. 42/2014.
4. Meanwhile, Respondent No. 1, being a financial creditor of the selfsame corporate debtor, moved the National Company Law Tribunal (NCLT) in an insolvency petition filed under Section 7 of the Code sometime in May/June 2017. This petition was admitted on 07.08.2017. Against the aforesaid order, an appeal was filed by the appellant herein which was dismissed by the Appellate Tribunal, in which Section 11 of the Code was referred to, and it was held by the Appellate Tribunal that since there was no winding up order by the High Court, the financial creditor's petition would be maintainable, as a result of which the appellant's appeal has been dismissed.
5. Learned counsel appearing on behalf of the appellant has painstakingly taken us through the record, and has referred to the Code, together with Notifications from the Ministry of Corporate Affairs, which, in exercise of powers under Section 239 of the Code, have made Rules called the Companies (Transfer of Pending Proceedings) Rules, 2015. She has also referred to amendments made up to date in the Eleventh Schedule to the Code and has argued before us that the winding up petition that had been preferred by her would clearly fall within the ambit of Rule 5 of the aforesaid Rules inasmuch as notice under Rule 26 of the Companies (Court) Rules had been served much prior to the commencement of the Code. This being the case, this winding up petition should, therefore, have carried on and should be allowed to carry on before the High Court. The necessary concomitant of this argument was that the winding up proceedings before the High Court should continue and not proceedings filed by other creditors under the Code.
6. Mr. Sanjiv Sen, learned senior counsel appearing on behalf of Respondent No. 1, countered these submissions and has placed before us all the relevant materials, statutory and otherwise, to state that the whole object of the Code would be frustrated if petitions for winding up in the High Court were to continue in the face of the insolvency petitions that have been filed under the Code. He referred to some of our judgments to buttress this submission and, in particular, to Section 238 of the Code. According to him, as has been held in some of our judgments, the proceedings that were initiated under Section 7 or Section 9 of the Code are independent proceedings, which must reach their logical conclusion unhampered by any winding up petition that may be pending in a High Court. According to him, it is also important to remember that the basic objective of the Code is to infuse life into a corporate debtor who is in the red, and it is only if the resuscitation process cannot be completed in accordance with the provisions of the Code that liquidation takes place under the Code. Keeping this in mind, it is obvious that the judgment of the Appellate Tribunal can be sustained on the grounds argued by him and the appeal must, therefore, be dismissed.
7. At this stage, it is important to advert to some of the provisions contained in the Code. Section 255 of the Code reads as under:
"255. Amendments of Act 18 of 2013.- The Companies Act, 2013 shall be amended in the manner specified in the Eleventh Schedule."
8. In pursuance of this D.D
22/01/2019
Facts:A winding-up petition (No. 42 of 2014) was filed by the appellant before the High Court of Delhi in 2014.Notice under Rule 26 of the Companies (Court) Rules, 1959, had been served.Another operational creditor filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (the Code).Respondent No. 1, a financial creditor, moved the NCLT under Section 7 of the Code in 2017....
(7)
V. SURENDRA MOHAN ... Vs.
STATE OF TAMIL NADU AND OTHERS ........Respondent D.D
22/01/2019
Facts: The Tamil Nadu Public Service Commission (TNPC) received a requisition for 162 posts of Civil Judge (Junior Division). The State Government, by order dated 08.08.2014, decided on a disability percentage of 40%-50% for partially blind and partially deaf candidates after consultation with the High Court. The appellant, Mr. V. Surendra Mohan, with a disability of 70%, participated in the selec...
(8)
STATE OF KERALA AND ANOTHER ... Vs.
MOHAMMED BASHEER ........Respondent D.D
22/01/2019
Facts: The respondent filed a petition under Section 8 of the Kerala Private Forests (Vesting and Assignment) Act, 1971, claiming ownership and possession of land exempted from vesting under Section 3(2). The appellant-State disputed the claim, asserting that the land vested in the government.Issues:Whether the respondent's claim of ownership and possession is valid under the Kerala Private F...
(9)
ANIL KUMAR Vs.
UNION OF INDIA ........Respondent D.D
21/01/2019
Facts:The appellant was aggrieved by the rejection of his claim for financial upgradation by CSIR and non-promotion to the higher post.The appellant contended that the failure to communicate the Annual Confidential Reports (ACRs), in which he had failed to meet the benchmark, violated the O.Ms issued by the Department of Personnel and Training.The appellant moved the Central Administrative Tribuna...