P C JHALANI & ORS. vs JHALANI TOOLS (INDIA) LTD. & ORS.

Judgment text excerpt

$~ * IN THE HIGH COURT OF DELHI AT NEW DELHI % Judgment reserved on: 22.09.2025 Judgment pronounced on: 08.10.2025 + CO. APP. 3/2024, CM APP. 8668/2024 and CM APP. 8670/2024 P C JHALANI & ORS .....Appellants Through: Mr. Alok Kumar Aggarwal, Ms. Anushruti, Ms. Anushka Sharma, Ms. Snigdha Rajpal, Ms. Aanavi O., Advs. versus JHALANI TOOLS (INDIA) LTD & ORS .....Respondents Through: Ms. Ruchi Sindhwani, Sr. Standing Counsel along with Ms. Megha Bharara, Adv. Mr. Yasharth, Adv. for IDBI CORAM: HON'BLE MR. JUSTICE ANIL KSHETARPAL HON'BLE MR. JUSTICE HARISH VAIDYANATHAN SHANKAR JUDGMENT ANIL KSHETARPAL, J. 1. The issue that arises for consideration in the present Appeal is whether, once a final winding up order has been passed against a Company and the Official Liquidator has taken charge, the Company Court is required to come to the aid of guarantors so as to shield them from recovery proceedings initiated by creditors. 2. The present Appeal, under Section 483 of the Companies Act, 1956, assails the correctness of order dated 21.12.2023 [hereinafter referred to as the “Impugned Order”] passed by the learned Single Judge in CO.APPL. No. 947/2023 in CO.PET. No. 539/1998, Signature Not Verified CO. APP. 3/2024 Page 1 of 8 Signed By:JAI NARAYAN Signing Date:08.10.2025 17:21:37 whereby the application filed by the Appellants seeking, inter alia, to restrain Respondent No.3/IDBI Bank from proceeding under its Notice dated 02.12.2023 demanding payment of Rs. 252.53 Crores, came to be dismissed. 3. The Appellants are personal guarantors of Respondent No.1 [hereinafter referred to as “the Company”], which was ordered to be wound up by this Court on 18.03.2003 in C.P. No. 539 of 1998. Following the order of winding up, a Provisional Liquidator and subsequently an Official Liquidator [