Amendment to the Transfer of Pending Proceedings Rules, 2016

The MCA has by way of its notification dated June 29, 2017 amended the Companies (Transfer of Proceedings) Rules, 2016 (‘Transfer Rules’), which specified rules for transfer of pending proceedings under the Companies Act, 1956 (‘CA 1956’) in relation to winding up and voluntary winding up of companies from the High Court to the NCLT. Rules 4 and 5 of the Transfer Rules have been amended as follows:

i. All proceedings related to voluntary winding up, where notice of resolution by advertisement has been given under CA 1956 but such company has not been dissolved before April 1, 2017, will continue to be dealt with under CA 1956 and not under the Insolvency and Bankruptcy Code, 2016 (‘IBC’).

ii. The erstwhile Rule 5 of the Transfer Rules provided for winding up proceedings pending before the High Court to be transferred to the NCLT. If the petition was not served on the respondent then such petitions, and the petitioner would, thereafter, be required to provide information as if such petition were an application under the IBC. The time for providing such information has now been extended up to July 15, 2017, failing which, such petition will stand abated and a fresh application under the IBC will have to be filed.

Published In:Inter Alia - Quarterly Edition - July 2017 [ English Chinese japanese ]
Date: July 1, 2017