Calcutta High Court
Shiva Shakti Security Services vs Official Liquidator And Anr on 25 April, 2025
Author: Arijit Banerjee
Bench: Arijit Banerjee
OD-2 to 4
ORDER SHEET
IN THE HIGH COURT AT CALCUTTA
Civil Appellate Jurisdiction
ORIGINAL SIDE
APO/194/2023
WITH
CP/387/2014
RE:JESSOP AND CO. LIMITED (IN LIQN.)
AND
SHIVA SHAKTI SECURITY SERVICES
VERSUS
OFFICIAL LIQUIDATOR AND ANR.
Wt3
APO/100/2023
IA NO. ACO/1/2022
IN THE MATTER OF:
JESSOP AND CO. LIMITED (IN LIQN.)
AND
INDO WAGON ENGINEERING LIMITED
VERSUS
OFFICIAL LIQUIDATOR AND ANR.
Wt4
APO/115/2023
IA NO. ACO/1/2022
IN THE MATTER OF:
JESSOP AND CO. LIMITED (IN LIQN.)
AND
JOYDEV SENGUPTA AND ORS.
VERSUS
THE OFFICIAL LIQUIDATOR AND ORS.
BEFORE:
The Hon'ble JUSTICE ARIJIT BANERJEE
AND
The Hon'ble JUSTICE OM NARAYAN RAI
Date : 25th April, 2025
2
Appearance:
Mr. Surajit Nath Mitra, Sr. Adv.
Mr. Arindam Paul, Adv.
...for the appellant in Item No.2
Mr. Jayanta Kumar Mitra, Sr. Adv.
Mr. K. R. Thaker, Sr. Adv.
Mr. Chayan Gupta, Adv.
Mr. Rittick Chowdhury, Adv.
Mr. Soumyajyoti Nandy, Adv.
...for the appellant in Item No.3
Mr. Ratnanko Banerji, Sr. Adv.
Mr. Shounak Mitra, Adv.
Ms. Akshita Bohra, Adv.
...for respondent no.2 In Item No.2
Mr. Jishnu Saha, Sr. Adv.
Mr. Madhu Sudan Sarkar, Adv.
Mr. Mousamjit Sarkar, Adv.
…for the appellants in Item No.4
Mr. Subhadip Biswas, Adv.
…for the O/L.
The Court: These three appeals are directed against a judgment and
order dated July 4, 2022, passed by a Learned Judge of this Court on an
application being CA/12/2022 made by a secured creditor of the company (in
liquidation).
The applicant was one Edelweiss Asset Reconstruction Company Limited.
The company (in liquidation) is Jessop and Company Limited.
Jessop went into liquidation sometime in 2017. Edelweiss claims to be a
secured creditor of the company. It says that its dues are to the tune of Rs.434
crore approximately. Edelweiss applied for transfer of the winding-up
proceedings to the National Company Law Tribunal (NCLT) relying on Section
434(1)(c) of the Companies Act, 2013. The Learned Judge directed transfer of
the proceedings to NCLT.
3
Being aggrieved, these appeals have been filed by, firstly, a contributory
of the company by the name of Indo Wagon Engineering Limited; secondly, by
an organisation which provided security support being Shiv Shakti Security
Services; and thirdly, by the workmen of the company.
Today, we have heard Mr. Jayanta Kumar Mitra, learned Senior
Advocate, representing the contributory Indo Wagon. He has basically argued
that Edelweiss is not a party to the winding-up proceedings. This is recorded
in several orders of this Court including an order of a Division Bench. All those
orders record that Edelweiss has chosen to stay out of the winding-up
proceedings. Hence, it lacked locus standi to apply for transfer of the
proceedings to NCLT.
Mr. Mitra further drew to our attention that Edelweiss pursued a claim
against the company (in liquidation) before the Debts Recovery Tribunal (DRT)
and obtained a judgment for about Rs.117 crore. That judgment and order has
been put in execution. Therefore, Edelweiss cannot have any interest in the
winding-up proceedings.
Learned Senior Advocate further tells us that Edelweiss has also filed an
application under Section 7 of the Insolvency and Bankruptcy Code before the
NCLT. He emphasized that in the aforesaid facts and circumstances, Edelweiss
could not have asked for transfer of the winding-up proceedings to NCLT.
Mr. Mitra further argued that notwithstanding Section 434(1)(c) of the
Companies Act, the Company Court still retains an element of discretion to
4
decide whether or not the winding-up proceedings ought to be transferred to
NCLT. Transfer is not automatic.
Mr. Mitra does not conclude his argument.
As requested by learned counsel for the parties, let these matters be
listed once again on April 30, 2025.
(ARIJIT BANERJEE, J.)
(OM NARAYAN RAI, J.)
sg.
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