2007 (2) TMI 335 - HC - Companies Law

Summary

Issues:
Interpretation of relief sought in a company petition under section 433 of the Companies Act regarding restraining the company from selling property during pending proceedings before the Industrial Tribunal.

Analysis:
The judgment in question pertains to an appeal filed against an order passed by a learned Single Judge in a company petition. The petition sought to restrain the company from selling its property during the pendency of proceedings before the Industrial Tribunal. The appellant argued that the relief sought in the petition could not be granted, as the grounds specified in section 433 of the Companies Act for winding up a company cannot be the basis for seeking only an interim order. The respondent contended that the property needed to be protected to ensure that if the Tribunal ruled in favor of the workers, the orders could be implemented. The Court observed that the relief sought in the petition was to prevent the company from alienating its property while proceedings were ongoing before the Tribunal.

The Court analyzed the provisions of section 433 of the Companies Act, which outline the conditions under which a company can be wound up. It noted that the petition did not contain any averments or prayers for winding up the company on the grounds specified in section 433. The relief sought in the petition primarily focused on restraining the company from selling or alienating its property during the Tribunal proceedings. The Court emphasized that merely filing a petition under certain sub-clauses of section 433 does not automatically imply a prayer for winding up.

Based on the above analysis, the Court concluded that the interim relief granted by the Single Judge could not be sustained. The Court set aside the order passed by the Single Judge and allowed the appeal, with no order as to costs. The judgment clarifies the distinction between seeking winding up of a company under section 433 of the Companies Act and seeking interim relief to prevent alienation of company property during ongoing proceedings before another tribunal.