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2009 (10) TMI 535 - HIGH COURT OF KARNATAKAWinding up - Held that:- In the instant case, in view of the civil disputes between the parties and particularly when the petitioner is not satisfied with the decree passed in his favour and has even preferred an appeal before this Court and in the face of there being a security for the outstanding dues of the petitioner given by the respondent, thus the case falls under an exception and no discretion can be exercised in favour of the petitioner under section 433(e) of the Act. Though the just and equitable clauses can be pressed into service for winding up of a company where substratum of the company has gone or where the company is formed for the purpose of fraud or where full investigation is necessary or where there is a complete deadlock in the management of the company on account of internal strife, none of the above situations exist in the instant case and neither has the petitioner made out a case on this ground. On the other hand, what is of significance is that the respondent is a company in the realm of public sector coming under the Ministry of Heavy Industries, Government of India supported by the Central Government and having a huge work force and was one of the top public sector companies once upon a time. Though presently the company is in a difficult financial situation, would not mean that it is just and equitable to wind up the said company. Petition dismissed.
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