The Supreme Court has issued notice in a Special Leave Petition raising an important question on whether expenses incurred for preserving and protecting the assets of a company in liquidation retain their priority status after winding-up proceedings are transferred from the High Court to the National Company Law Tribunal (NCLT).
The petition has been filed by Shiva Shakti Security Services, which was appointed by the Official Liquidator to provide security services for the assets of Martina Bio Genics Pvt. Ltd. (in liquidation). It contends that the dues for such services constitute preservation or liquidation costs entitled to priority and should not be relegated to the status of ordinary operational debt merely because the winding-up proceedings have been transferred to the NCLT.
The petitioner challenges the Calcutta High Court’s decision upholding the transfer of the winding-up proceedings and argues that such transfer fundamentally alters the legal character and priority of its claim, contrary to the principles governing liquidation expenses and the Supreme Court’s decision in Action Ispat & Power Pvt. Ltd. v. Shyam Metalics & Energy Ltd, (2021) 2 SCC 641 .
A Bench of Justice S.V.N. Bhatti and Justice Atul S. Chandurkar issued notice in the matter, returnable on 14 July 2026, while permitting the petitioner to effect personal service on the respondents in addition to regular service.
