Transfer of certain pending proceedings
Section 434 of the Companies Act, 2013 deals with transfer of certain pending proceedings. On such date as may be notified by the Central Government in this behalf,-- (a) all matters, proceedings or cases pending before the Board of Company Law Administration (herein in this section referred to as the Company Law Board) constituted under sub-section (1) of section 10E of the Companies Act The Act came into force on 01 Apr 2014.
1[434. Transfer of certain pending proceedings.--(1) On such date as may be notified by the Central Government in this behalf,--
(a) all matters, proceedings or cases pending before the Board of Company Law Administration (herein in this section referred to as the Company Law Board) constituted under sub-section (1) of section 10E of the Companies Act, 1956 (1 of 1956), immediately before such date shall stand transferred to the Tribunal and the Tribunal shall dispose of such matters, proceedings or cases in accordance with the provisions of this Act;
(b) any person aggrieved by any decision or order of the Company Law Board made before such date may file an appeal to the High Court within sixty days from the date of communication of the decision or order of the Company Law Board to him on any question of law arising out of such order:
Provided that the High Court may if it is satisfied that the appellant was prevented by sufficient cause from filing an appeal within the said period, allow it to be filed within a further period not exceeding sixty days; and
(c) all proceedings under the Companies Act, 1956 (1 of 1956), including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies, pending immediately before such date before any District Court or High Court, shall stand transferred to the Tribunal and the Tribunal may proceed to deal with such proceedings from the stage before their transfer:
Provided that only such proceedings relating to the winding up of companies shall be transferred to the Tribunal that are at a stage as may be prescribed by the Central Government.
2[Provided further that only such proceedings relating to cases other than winding-up, for which orders for allowing or otherwise of the proceedings are not reserved by the High Courts shall be transferred to the Tribunal
3]Provided also that]--
(i) all proceedings under the Companies Act, 1956 other than the cases relating to winding up of companies that are reserved for orders for allowing or otherwise such proceedings; or
(ii) the proceedings relating to winding up of companies which have not been transferred from the High Courts;
shall be dealt with in accordance with provisions of the Companies Act, 1956 and the Companies (Court) Rules, 1959.]
4[Provided also that proceedings relating to cases of voluntary winding up of a company where notice of the resolution by advertisement has been given under sub-section (1) of section 485 of the Companies Act, 1956 but the company has not been dissolved before the 1st April, 2017 shall continue to be dealt with in accordance with provisions of the Companies Act, 1956 and the Companies (Court) Rules, 1959.]
(2) The Central Government may make rules consistent with the provisions of this Act to ensure timely transfer of all matters, proceedings or cases pending before the Company Law Board or the courts, to the Tribunal under this section.]
Section 434, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Jaipur Metals and Electricals Employees Organization Thru General Secretary Mr. Tej Ram Meena vs Jaipur Metals and Electricals Ltd. Thru Its Managing Director
Court's Decision & Legal Precedent
The Court held that winding-up proceedings pending before a High Court stand transferred to the NCLT only in the manner prescribed by section 434 read with the Companies (Transfer of Pending Proceedings) Rules, 2016 (Rules 5 and 6), and that the non-obstante clause in section 238 of the Insolvency and Bankruptcy Code overrides the Companies Act, so that an independent application by a financial creditor under section 7 is maintainable before the NCLT notwithstanding a winding-up petition still pending in the High Court.
On this section: Construes the transfer machinery of section 434 and its interaction with the IBC, holding that section 434 does not confer on the High Court any continuing exclusive jurisdiction that could bar a fresh insolvency application before the NCLT.
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Action Ispat and Power Pvt. LTD vs Shyam Metalics and Energy Limited
Court's Decision & Legal Precedent
Even post-admission of a winding up petition and after appointment of a Company Liquidator to take over assets of a company sought to be wound up, discretion is vested in the Company Court to transfer such petition to the NCLT. Such discretion should be exercised based on whether irreversible steps have been taken in the winding up proceedings. If no actual sales of immovable or movable properties have taken place and the proceedings have not reached a stage making it impossible to set the clock back, the Company Court should transfer the proceedings to NCLT to be dealt with as an application for initiation of corporate insolvency resolution process under the Insolvency and Bankruptcy Code 2016, in accordance with the legislative intent to prioritize corporate revival over liquidation.
On this section: Core provision governing transfer of winding up proceedings from High Court to NCLT; 5th proviso added by amendment on 17 August 2018 allows discretionary transfer at any stage
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Pushpa Shah vs The State of Maharashtra
Court's Decision & Legal Precedent
The Court held that a winding-up petition is governed by the residuary Article 137 of the Limitation Act, 1963 and must be brought within three years of the date of default, and that a petition already time-barred when filed is not revived or cured by being transferred to the NCLT and treated as a section 7 application under the Insolvency and Bankruptcy Code.
On this section: Holds that the transfer effected under section 434 carries the petition across in the condition it was in, so a winding-up petition that was time-barred before the High Court remains time-barred after transfer to the NCLT.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… Equally, it cannot be said that any subterfuge has been availed of for the same reason that Section 7 is an independent proceeding that stands by itself. As has been correctly pointed out by Shri Sinha, a discretionary jurisdiction under the fifth proviso to Section 434(1)(c) of the Companies Act, 2013 cannot prevail over the undoubted jurisdiction of the NCLT under the IBC once the parameters of Section 7 and other provisions of the IBC have been met. For all these reasons, therefore, the appeal is dismissed and the interim order that has been passed by this Court on 18.12.2020 …
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… In my opinion, it would be in the interest of justice and in the interest of the respondent company and the creditors that the matter be transferred to NCLT in exercise of the discretionary powers of the court under section 434 of the Companies Act, 1956. The order appointing the OL is a recent order and not much time has elapsed since then. The OL has only taken steps to seize the office of the respondent company and the factory premises and further exercise is yet to be carried out. The application is allowed as above. The present …
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… No. 179 of 2001 and C.P. No. 180 of 2001 by one Mr. S. Ramaiah (Respondent No. 3 in S.L.P. (Civil) No. 33825/2009) and his wife respectively. Having deposited monies with KOFL, which had been defaulted upon, they preferred these company petitions under Section 433(e) and (f) and Section 434 of the Companies Act, 1956 (hereinafter "the 1956 Act") seeking the winding up of KOFL and the repayment of their dues (hereinafter "winding up petitions"). When these petitions came up before the learned Company Judge on 05.12.2001, it was observed that the liabilities of KOFL (including outstanding secured …
Made under this section, and citing it
10 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
- Companies (Removal of Difficulties) Order 2017Order 2017
- Companies (Transfer of Pending Proceedings) Amendment Rules, 2017Rule 2017
- Companies(Transfer of Pending Proceedings) Second Amendment Rules, 2017Rule 2017
- Companies (Removal of Difficulties) Fourth Order, 2016Order 2016
- Companies (Transfer of Pending Proceedings) Rules 2016Rule 2016
- Transfer of matters or proceedings or cases pending before the Company Law Board to National Company Law TribunalNotification 2016
- The Companies (Removal of Difficulties) Fourth Order, 2014.Order 2014
- The Companies (Removal of Difficulties) Second Order,2014Order 2014
- Companies (Removal of Difficulties) Order,2013Notification 2013
- Companies (Removal of Difficulties) Order,2013 dated 20.09.2013Order 2013
Another 1 instrument names this provision in its title or its text without being made under it.
Questions about Section 434
What have the courts held on Section 434 of the Companies Act?
Jaipur Metals and Electricals Employees Organization Thru General Secretary Mr. Tej Ram Meena vs Jaipur Metals and Electricals Ltd. Thru Its Managing Director is the leading judgment on this section among those set out below: Construes the transfer machinery of section 434 and its interaction with the IBC, holding that section 434 does not confer on the High Court any continuing exclusive jurisdiction that could bar a fresh insolvency application before the NCLT. Another 2 judgments on this section are set out below, all of them from the Supreme Court.
How do I find court cases under Section 434 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 434, section 434 Companies Act, section 434 of the Companies Act. People searching for it also type companies act 2013 section 434. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Jaipur Metals and Electricals Employees Organization Thru General Secretary Mr. Tej Ram Meena vs Jaipur Metals and Electricals Ltd. Thru Its Managing Director.
What should I read with Section 434 of the Companies Act, and has it changed?
1 other provision in this corpus refers back to it. The rules and notifications made under it are where it actually bites, and there are 10: most recently Companies (Removal of Difficulties) Order 2017 (2017), then Companies (Transfer of Pending Proceedings) Amendment Rules, 2017 (2017), and 8 more.
When did Section 434 of the Companies Act come into force?
Section 434 of the Companies Act, cited as Companies Act 434, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.