WALCHANDNAGAR INDUSTRIES LIMITED Vs. GREEN VALLEY IND. LTD.

JUDGEMENT

(1.) This is a creditor's winding-up petition instituted, inter alia, under Sec. 433 of the Companies Act, 1956. The petition has not yet been advertised.

(2.) There was a divergence in the practice followed in different High Courts since the inception of the 1956 Act. Some High Courts required the immediate publication of an advertisement upon the creditor's winding-up petition being filed; whereas others, including Calcutta and Gauhati, required the Company Court to first be satisfied as to the existence of the indisputable debt before directing the publication of the advertisement. Invariably, when the Court was satisfied that the debt was indisputably due, an option would be given to the company to pay off the same, failing which, the advertisement would ensue.

(3.) In this case, the advertisement has not yet been published. Though the petition was filed before the relevant provisions of the Companies Act, 2013 were notified and the Insolvency and Bankruptcy Code, 2016 came into effect, the law, as it stands now, permits only matters that have been advertised to be retained by the Court and requires all other matters to be transferred to the appropriate Company Law Tribunal since the entire regime as to insolvency has been reorganised and parked with such authority.