# In the matter of Atlas Cycles (Haryana) Ltd. vs. New Modern Steel Industries & Ors.

> NCLAT judgment dated 2023-09-01. Citation: TCN-2023-NCLAT-00228. This appeal challenges the order dated 11.08.2023 passed by the National Company Law Tribunal…

- **Court:** NCLAT
- **Order date:** 1 Sept 2023
- **Citation:** TCN-2023-NCLAT-00228
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/atlas-cycles-haryana-ltd-vs-new-modern-steel-industries-ors-9900fe51

## Summary

### Background

This appeal challenges the order dated 11.08.2023 passed by the National Company Law Tribunal (NCLT), New Delhi, regarding an application T.A. (Co. Act)-02(PB)/2023 filed under Rule 16(d) of NCLT Rules, 2016, for the transfer of petitions under Section 7 and 9 of the Insolvency and Bankruptcy Code, 2016, from the Chandigarh Bench to the Principal Bench in New Delhi. The application sought to tag these cases with CP No. 18/ND/2015. The NCLT had disposed of this application. The appellant company had previously filed an application on 10.01.2023 seeking the transfer of approximately 34 cases pending before the Chandigarh Bench, citing the appointment of a new board of directors with a mandate to revive the company. The NCLT Chandigarh Bench was directed not to proceed

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## Facts

Two shareholders, Vikram Kapur and Angad Kapur, filed CP No. 18/ND/2015 against Atlas Cycles (Haryana) Ltd. under Sections 397, 398, 399 & 402 of the Companies Act, 1956 (now dealt with under Section 241, 242 & 244 of the Companies Act 2013). This petition was disposed of on 06.12.2022. The order dated 06.12.2022 was challenged in appeal i.e. CA (AT) No. 299 of 2022. The Appellant Company filed an application dated 10.01.2023 seeking the transfer of 34 cases filed under Sections 7 and 9 of the Insolvency and Bankruptcy Code, 2016, pending before the Chandigarh Bench, to the Principal Bench in New Delhi. This was based on the appointment of a new board of directors on 06.12.2022. On 24.01.2023, the Adjudicating Authority directed the registry to take a report of

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority committed a mistake in declining the Appellant's prayer for …

**Ratio:** The power to transfer cases under Rule 16(d) of the NCLT Rules is discretionary and

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**Reasoning:** The Tribunal reasoned that since the order dated 06.12.2022, which was the basis for

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**Interpretation:** Rule 16(d) of the NCLT Rules provides the Adjudicating Authority with the power

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**Application:** Given that the order appointing the new board of directors was set aside, the

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## Parties

- **Judges:** Rakesh Kuma…; Naresh Sa…
- **Appellants:** Atlas Cycles…
- **Respondents:** New Modern Steel…

## Timeline

- **2015-01-01 — CP No. 18/ND/2…**: Vikram Kapur and Angad Kapur filed CP No.…
- **2022-12-06 — Company Petition…**: The Adjudicating Authority…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 242 — Power to remove difficulties](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-242)

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