Home Case Index All Cases Companies Law Companies Law + HC Companies Law - 2013 (10) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 119 - HC - Companies LawWinding up Petition u/s 433(f) r.w. Section 439(c) of the Companies Act – The petitioner was denied access to the company’s records, factory etc. and was made non-functional – Held that:- Clause (f) of section 433 uses the expression “just and equitable” - This expression was not to be construed ejusdem generis with the other clauses of the section, as held by the Supreme Court in Rajamundry Electric Supply Corporation Ltd. v. A. Nageswara Rao [1955 (12) TMI 21 - SUPREME COURT OF INDIA ] - The facts alleged in the petition and elaborated prima facie show that this was a case to which the provisions of Sections 397-398 may be attracted - It was well-settled that winding-up proceedings have to be used as a last resort - In a case such as the present one, there were preventive provisions in the Act safeguarding against oppression and mismanagement - If some other remedy was available to the petitioner, that should be exhausted first - This petition was thus premature. The petitioner draws the attention to the accounts to show that for three continuous years the company had been incurring losses which exceed the paid-up capital - this by itself was not decisive of the question whether it was just and equitable to wind up the company - Once the differences between the directors were sorted out – for which no attempt appears to have been made so far – the possibility of the company reviving its operations and making profits cannot be ruled out - the winding- up petition was premature and was not maintainable – Decided against Petitioner.
|