The Jurisdictional Shift
Before the Companies Act, 2013 was brought into force, winding-up jurisdiction was exercised by the High Court. Section 434 of the 2013 Act transferred the winding-up jurisdiction to the NCLT, subject to the notification issued by the Central Government. The transfer was effected in stages, and the transitional provisions govern the cases that were pending on the date of transfer.
The Pending Cases
A winding-up petition filed before the High Court before the transfer date continues to be governed by the High Court’s rules and procedures. The NCLT does not automatically inherit pending petitions unless the case is transferred by a specific order or notification. The parties should verify the transfer status before proceeding, because a filing in the wrong forum after the transfer is a jurisdictional defect.
The Transitional Winding Up
Where a company is already in winding up under the High Court’s supervision, the NCLT’s role is limited to specific matters. The Official Liquidator attached to the High Court continues to function, and the NCLT’s jurisdiction is engaged only where the Companies Act expressly confers it. The distinction between “winding up by the Tribunal” and “winding up under the supervision of the High Court” remains relevant for pending cases.
The Section 434 Notification
The Central Government’s notification under Section 434(1)(c) transferred the winding-up jurisdiction to the NCLT with effect from 1 December 2016. A petition filed after that date must be filed before the NCLT, not the High Court. A petition filed before that date but not transferred remains with the High Court, and the NCLT cannot entertain a parallel petition on the same cause of action.
The Practical Risk
A creditor who files a winding-up petition in the High Court after the transfer notification faces dismissal for want of jurisdiction. A creditor who files in the NCLT without verifying whether the company is already subject to a High Court winding-up order faces a parallel-proceedings objection. The jurisdictional check should be the first step in any winding-up strategy.
Call to Action: For winding-up forum selection, transitional case assessment, or NCLT/High Court jurisdictional review, contact office@anujdesaiassociates.com or 9619456656. Website: https://anujdesaiassociates.com. LinkedIn: linkedin.com/in/ca-anuj-desai-122547230.