TIMBER (P ) LTD Vs. CONSERVATOR OF FORESTS

JUDGEMENT

(1.) It is not disputed that before the winding up petition against M/s. Timber (P.) Ltd. was filed in this court, an application under Section 20 of the Arbitration Act was pending in the Jammu & Kashmir High Court. Subsequently, a petition for winding up of the company was filed and the company was wound up by this court on 1st April, 1977. In this application a prayer has been made that the proceedings pending before the Jammu & Kashmir High Court be ordered to be transferred to the file of this court in view of the provisions of Section 446(3) of the Companies Act, 1956 , read with R. 9 of the Companies (Court) Rules, 1959 . This prayer is opposed by the learned counsel for the State of Jammu & Kashmir.

(2.) After hearing the learned counsel for the parties and taking into consideration the facts and circumstances of the case, I am of the opinion that it will be expedient in the interest of justice that the proceedings pending before the Jammu & Kashmir High Court are transferred to the file of this court. It has been mentioned in the petition that it is not possible for the official liquidator attached to this court to pursue the proceedings in that court effectively. The contention of the learned counsel for the Jammu & Kashmir Government is that most of the witnesses will be from that area and it will cause inconvenience to the Jammu & Kashmir Government.

(3.) There is no material before me at this stage to appreciate this argument. The application under Section 20 of the Arbitration Act is the only proceeding which is pending. If the said application succeeds and the agreement is ordered to be filed in court, it is then that the case has to proceed further. The matter is yet at the preliminary stage. This argument is without any force. The provisions of Section 446(3) of the Companies Act read with r. 9 of the Companies (Court) Rules have been enacted with a view to give jurisdiction to the company court to deal with all the matters concerning a company which has been ordered to be wound up. The legislative policy as enshrined in these provisions is certainly conducive for the disposal of the proceedings which concern a company which has been ordered to be wound up.