Latest development for transfer of winding up petition from the high court to NCLT

Latest development for transfer of winding up petition from the high court to NCLT

CENTRAL GOVERNMENT HAS ISSUED Companies(Removal of Difficulties) 4th order, 2016,which is recently published has throne new light on this subject.
MCA has notified the winding up provisions of the Companies Act, 2013 to be effective from December 15, 2016.
In relation to the transfer of pending proceedings, the Companies (Transfer of Pending Proceedings) Rules, 2016 (as notified last evening) provides that all winding up petitions under Section 433(e) of the Companies Act, 1956 (ground of inability to pay its debts) that have not been served on the company shall be transferred to the NCLT and be treated as an application under the relevant section of the Insolvency and Bankruptcy Code, 2016 (Code).
The applicant will have to provide additional information as required for an application under the Code within 60 days of the date of the notification, failing which the petition will abate.
Further, the Companies (Removal of Difficulties) Fourth Order, 2016 (as notified last evening) provides that all winding up proceedings that have not been transferred to the NCLT will be dealt with in accordance with the Companies Act, 1956 and the rules thereunder.
The liquidation provisions of the Code (sections 33 – 54) will also come into effect from December 15, 2016.

Thus, entire scenario for the petitions filed under the Companies Act will start getting changed from the mid of december2016 and now NCLT will be throbing with lot of work and activities.

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