The Delhi High Court has stated that there is no barrier to considering written submissions as an application to transfer a winding-up petition to the NCLT.
The Delhi High Court decided that it can accept written submissions as a request to transfer a winding-up petition to the NCLT, even without a formal application. This decision came after a Company Petition was filed under the Companies Act, 1956, to wind up Pinnacle Air Pvt. Ltd. due to its failure to pay debts owed to COWI India Pvt. Ltd. The case has been waiting for a decision in the High Court, and the respondent wanted it moved to the National Company Law Tribunal (NCLT) in Delhi.
Justice Amit Mahajan noted that the court does not need a separate application if the intention to transfer is clear from the records. Advocate Sanjay Gupta represented the Appellant, while Advocate Amit George represented the Respondent. The petitioner’s counsel opposed the transfer, citing a Calcutta High Court ruling that stated a petition cannot be moved to the NCLT without a formal application. The Respondent argued that the High Court has the authority to transfer the case on its own if it serves justice, referencing a previous ruling in Gurbakhsh Singh BA, Builders P. Ltd. v. Fortis Hospital Ltd. (2024).
The Bench observed that the winding-up petition was not viable from the start. The case was still in its early stages, with no provisional or official liquidator appointed to manage the respondent company’s assets. Additionally, there had been no significant orders in this petition for 7 years. The Bench referred to Section 434 of the Companies Act, 2013, which allows for the transfer of winding-up cases from High Courts to the NCLT. They also cited a Supreme Court ruling in Action Ispat and Power P. Ltd. v. Shyam Metalics and Energy Ltd. (2021), stating that winding-up cases that have not advanced significantly should be moved to the NCLT.
The Bench noted that the respondent had submitted written requests to transfer the winding-up petition to the NCLT. “Given the respondent’s clear request for transfer and the legal precedents indicating that a formal application is not necessary, this Court sees no reason not to treat the written submissions as a request for transfer to the NCLT,” the Bench stated. “Therefore, considering the respondent’s request and the lack of significant progress in the winding-up process, this petition cannot continue in this Court,” the Bench concluded, transferring the case to the NCLT, Delhi Bench, for further action.
Cause Title: COWI India Pvt Ltd v. Pinnacle Air Pvt Ltd (Neutral Citation: 2025:DHC:849)
Appearance:
Appellant: Advocates Sanjay Gupta, Abhilasha Sharma
Respondent: Advocates Amit George, Manan Batra, Varun Tyagi & Suparna Jain
