Winding-up petition can be transferred from HC to NCLT without formal application: Delhi High Court

The Delhi High Court recently held that a winding-up petition filed under the Companies Act can be transferred from the High Court to the National Company Law Tribunal (NCLT) even if a formal application has not been made in this regard seeking such transfer [Cowi India Pvt Ltd Vs Pinnacle Air Pvt Ltd]. .A company petition was filed by Cowi India Pvt Ltd (Cowi) under Companies Act, 1956 seeking the winding up of Pinnacle Air Pvt. Ltd (Pinnacle) on the grounds of its inability to pay its debts.Pinnacle had sought transfer of the matter to the NCLT Delhi..Justice Amit Mahajan observed that no substantive proceedings have been undertaken towards winding up and allowed Pinnacle's transfer plea.“Thus, considering the express request by the respondent, the fact that no substantive proceedings have been undertaken towards winding up of the company, the present petition cannot be allowed to be continued before this Court. Hence, the instant petition is transferred to the NCLT, Delhi Bench, for further proceedings,” the Court directed. .The issue before the Court was whether it can allow transfer of the winding-up petition pending before itself to the NCLT without a formal application seeking such prayer. .Cowi submitted that a formal application is necessary for such a transfer while Pinnacle submitted that there is no bar on the High Court transferring the matter to the NCLT without a formal application..The Court held that Pinnacle’s written submissions can be treated as an application seeking transfer and no separate application needs to be filed. “In view of the respondent’s express request for transfer and the legal precedents affirming that a formal application is not indispensable, this Court finds no impediment in treating the written submissions as an application for transfer of the present petition to the NCLT," the Court stated. The Court is not bound to insist on a separate application when the intent of the party seeking transfer is evident from the record, the single-judge made it clear..Advocates Sanjay Gupta and Abhilasha Sharma appeared for Cowi. Advocates Dr Amit George, Manan Batra, Varun Tyagi and Suparna appeared for Pinnacle.[Read Order].Follow Bar and Bench channel on WhatsAppDownload the Bar and Bench Mobile app for instant access to the latest legal news.