Jaipur Metals & Electricals employees organisation through gen. sec Vs Jaipur Metals & Electricals Ltd (Civil Appeal no. 12023 of 2018) - Synopsis
Team SoOLEGAL 2 Nov 2020

In this particular case, Jaipur Metals & Electricals employees organisation through gen. sec Vs Jaipur Metals & Electricals Ltd (Civil Appeal no. 12023 of 2018) the Hon'ble Supreme Court held that, while the present case concerned Rule 5(2) in which cases will continue to be dealt with by the High Court, where the advice was forwarded to the High Court by the Board for Industrial and Financial Reconstruction on the winding-up of a business, it was argued that Rule 5(2) was replaced on 29 June 2017 as a re-establishment of privileges and as a result, it is unnecessary to continue to apply Rule 5(2) even after June 29, 2017. The Court also was of the view that the language of Rule 5(2) is straightforward enough, it has been argued before the Court that Rule 5 was repealed on 29.06.2017, which meant that Rule 5(2) had been omitted. The consequence of the failure to comply with Rule 5(2) is not to immediately transfer all cases referred to in Section 20 of the SIC Act to the NCLT, as otherwise, the transfer of such cases to the NCLT will have to be framed by a particular rule as set out in Rule 5(1). The real reason for the omission of Rule 5(2) of the substituted Rule 5 is that it is appropriate to mention, only once, on repeal of the SIC Act, that the proceedings under Section 20 of the SIC Act continue to be dealt with by the High Court of Justice.
The Supreme Court also referred to an amendment to Section 434(1)(c) of the Companies Act with effect from 17 August 2018. The cases thus moved would then be dealt with by the NCLT as a submission for the commencement of a corporate insolvency settlement procedure under the Code. According to the Court, the proceedings under Section 20 of the SIC Act pending before the High Court shall continue as such until a party has lodged an application before the High Court for the transfer of such proceedings after 17.08.2018. Once this has been done, the High Court must pass those cases to the NCLT, which will then deal with such proceedings as an application for the commencement of a corporate insolvency settlement procedure under the Code.
The Supreme Court ruled that the trials in the NCLT must resume and that the appeal pending before the High Court could not be brought on the grounds of Section 238. With this in view, the Bench set aside the decision of the High Court.

×

C2RMTo Know More

Something Awesome Is In The Work

0

DAYS

0

HOURS

0

MINUTES

0

SECONDS

Sign-up and we will notify you of our launch.
We’ll also give some discount for your effort :)

* We won’t use your email for spam, just to notify you of our launch.
×

SAARTHTo Know More

Launching Soon : SAARTH, your complete client, case, practise & document management SAAS application with direct client chat feature.

If you want to know more give us a Call at :+91 98109 29455 or Mail info@soolegal.com