Case Note & Summary
The applicant, Kingfisher Airlines Limited, filed an application under Section 466 of the Companies Act, 1956, seeking recall of the order dated 30.10.2013 by which a winding up petition filed by a consortium of banks (State Bank of India, Axis Bank, Bank of Baroda, Bank of India, Central Bank of India, Corporation Bank, Federal Bank, IDBI Bank, Indian Overseas Bank, Punjab National Bank, State Bank of Mysore, UCO Bank, and United Bank of India) was admitted. The applicant contended that the winding up petition was not maintainable as the company was not commercially insolvent and that the banks had not complied with the statutory requirements under Sections 433 and 434 of the Companies Act. The banks opposed the application, arguing that the Company Court had no power to recall its own order and that the remedy lay in an appeal under Section 483 of the Act. The Court, after hearing both sides, held that the Company Court does not possess any inherent power to recall or review its own order admitting a winding up petition. The Court observed that the Companies Act, 1956, is a complete code and does not confer any such power. The remedy of the applicant, if aggrieved, is to file an appeal under Section 483 of the Act. The Court also noted that Section 466 of the Act, which provides for stay of winding up proceedings, does not empower the Court to recall the admission order. Accordingly, the application was dismissed.
Headnote
A) Company Law - Winding Up - Recall of Admission Order - Companies Act, 1956, Sections 433, 434, 466, 483 - The applicant company sought recall of the order admitting a winding up petition filed by a consortium of banks. The Court held that the Company Court has no inherent power to recall or review its own order admitting a winding up petition, as such power is not conferred by the Companies Act, 1956. The remedy lies in an appeal under Section 483 of the Act. The Court further held that Section 466 of the Act, which deals with stay of winding up proceedings, does not confer power to recall the admission order. (Paras 1-10)
Issue of Consideration
Whether the Company Court has the power to recall or review its own order admitting a winding up petition under the Companies Act, 1956.
Final Decision
Company Application No.2214 of 2013 is dismissed.
Law Points
- Company Court has no inherent power to recall or review its own order admitting a winding up petition
- Recall of admission order not permissible under Companies Act
- 1956
- Remedy lies in appeal under Section 483 of Companies Act
- Section 466 of Companies Act
- 1956 does not confer power to recall admission order
- Order admitting winding up petition is a final order
