Winding Up Proceedings On Nascent Stage , To Be Transferred To NCLT: Delhi High Court

In the case of Arabian Oilfield Suppliers & Services v. Greka Drilling (India) Limited, the Delhi High Court, presided by Justice Dharmesh Sharma, held that winding-up proceedings at a nascent stage should be transferred to the NCLT. \r

Despite the respondent's failure to pay outstanding dues, the court noted the absence of substantive orders towards winding up. Referring to legislative changes under the Insolvency and Bankruptcy Code, 2016, and the Companies Act, 2013, the court invoked Section 434 of the latter, allowing transfer of proceedings to the NCLT. \r

Citing the Supreme Court's precedent, it emphasized transfer of cases with minimal progress. The parties were directed to appear before the NCLT on July 9, 2024.