MANU/DE/3348/2024

True Court CopyTM

IN THE HIGH COURT OF DELHI

Co. Pet. 48/2016

Decided On: 07.05.2024

Appellants: Atamjit Singh and Ors. Vs. Respondent: Sports Fit World Pvt. Ltd.

Hon'ble Judges/Coram:
Dharmesh Sharma

JUDGMENT

Dharmesh Sharma, J.

1. The present company petition has been instituted under Section 433 (e) and (f) of the Companies Act, 19561 read with Section 434 and 439 of the Act, seeking winding up of the respondent company-M/s. Sports Fit World Pvt. Ltd., and is predicated on the non-payment of an outstanding principal amount of Rs. 1,99,70,730/-, which is stated to have arisen as a result of arrears of rent for the period of June 2013 to 04.11.2015.

2. Briefly stated, the parties entered into a lease deed dated 01.06.2012, which was duly registered and stamped, whereby the respondent company was granted a lease for the basement, first floor and second floor of a commercial property owned by the petitioner, situated at SCO No. 42-43, Section 9-D, Chandigarh. It is stated that said lease was for a period of 9 years and it was agreed that monthly rental of Rs. 9,25,000/-was payable. Further, the lease deed stipulated a lock-in period of 2 years with a clause for escalation of rent @ 5% per year.

3. It is the case of the petitioner that the respondent company has been a serial defaulter in making payments of the due rent and that the cheques issued at the behest of the respondent company have been dishonored on presentation on various occasions, bearing the remarks of 'Stop Payments' and 'Insufficient Funds'. In view of the same, the petitioner company served a legal notice dated 08.03.2015 upon the respondent company and thereafter initiated proceedings against them under Section 138 of the Negotiable Instruments Act, 1881.

4. It has been further stated that consequent to the perpetual default in payment of rent, the petitioner initiated proceedings under Section 13 of the Punjab Rent Control Act and preferred Rent Petition No. 1216/2014 before the Rent Controller (Chandigarh), which was decided on 03.07.2014 and the respondent company was directed to handover vacant and peaceful possession of the property in question to the petitioner.

5. Despite repeated reminders, the respondent company failed/neglected to discharge its liability and consequently, the petitioner was constrained to serve a statutory legal notice of winding up upon the respondent on 18.11.2015, calling upon them to repay the outstanding amount of Rs. 1,99,70,730/-along with interest @ 24% per annum. Although the respondent company was in receipt of the said notice, it is stated that the same was not replied to and nor was the outstanding liability discharged, hence the present petition was preferred by the petitioner.

6. It appears that the respondent company has failed to pay its debt in the normal and ordinary course of its business, hence, the present petition has been filed. However, from a perusal of the record, it is borne out that the present company petition is a complete non-starter, in so far then neither a Provisional Liquidator nor an Official Liquidator has yet been appointed in the present petition.

7. In view of the fact that the Insolvency and Bankruptcy Code, 2016 as well as the Companies Act, 2013, have since been enacted during the pendency of these proceedings, it is the opinion of this court that the present petition does not deserve to continue before this Court, and it would be appropriate for the same to be transferred to the National Company Law Tribunal2. In this regard, due consideration of Section 434 of the Companies Act, 2013 is necessary, which provides for the transfer of proceedings relating to winding up, pending before High ........