Authority: National Company Law Tribunal (NCLT), New Delhi Principal Bench
Order Date: 11 June 2026
Case Overview
This proceeding involves a petition (CP 38/271- 273/PB/2026) filed by Free Trade Warehousing Private Limited (Petitioner) seeking the winding up of Kandla Free Trade Warehousing Private Limited and Others (Respondents) under Sections 271-272 of the Companies Act, 2013. During the hearing, the tribunal raised a fundamental question regarding the petition's maintainability. This stems from a legislative amendment to Section 271 of the Companies Act, 2013, which came into effect on 15 December 2016. The amendment omitted clause (a) of Section 271, which previously provided 'inability to pay its debts' as a ground for winding up a company. The tribunal observed that, consequently, the appropriate legal remedy for a creditor against a company unable to pay its debts is now to initiate a Corporate Insolvency Resolution Process (CIRP) under Section 10 of the Insolvency and Bankruptcy Code (IBC), 2016.
Final Outcome
The tribunal did not issue a final ruling on the winding-up petition. Instead, it adjourned the matter and granted time to the petitioner's counsel, Ms. Nikita Bangera, to present arguments on how the petition remains maintainable in light of the amended law. The case has been listed for the next hearing on 3 September 2026.
Topics: Winding-Up Petition, Companies Act Amendment, IBC