2012 (8) TMI 1096 - HC - Companies Law

Winding up petition - breach of contract - Held that:- What is important in a case of winding up of a company is not the interest of the applicant but the interest of the stakeholders of the company as a whole - Winding up is the last thing the Court would do and not the first thing to do having regard to its impact and consequences

In the light of the order of the CLB, and M/s IL & FS being inducted into the management of the respondent company and, as they are said to have 80% of the share capital and are said to have invested more than ₹ 150 in the respondent company, it might be inappropriate to exercise discretion at this stage to admit the company petitions filed for winding up of the respondent company. On the other hand this Court cannot also ignore the fact that the net worth of the respondent company has completely eroded, and its exercise of discretion not to entertain the company petitions may well result in further increase of the total debt due to banks and financial institutions, and their inability later to recover the debt, even in part.