Rule 101 substitution can continue winding-up proceedings even after dismissal at the original petitioner's instance.

Rule 101 of the Companies (Court) Rules, 1959 is read to permit substitution of another creditor even after a winding-up petition has been dismissed at the instance of the original petitioner. The expression "allow it to be dismissed" is treated as broad enough to cover dismissal after withdrawal, so substitution is not confined to cases where the original petitioner remains before the court. A functus officio objection is rejected because a narrow construction would allow the petition to be defeated by procedural withdrawal and frustrate the rule's purpose. The substituted creditor may therefore continue the winding-up proceedings.

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Issues: Whether, after the winding-up petition had been dismissed as withdrawn, another creditor could still be permitted under Rule 101 of the Companies (Court) Rules, 1959 to be substituted and continue the petition.

Analysis: Rule 101 contemplates permission not only when the original petitioner consents to withdraw the petition but also when the petition is allowed to be dismissed. The phrase "allow it to be dismissed" was treated as wide enough to permit substitution of another creditor even after dismissal at the instance of the original petitioner. The objection that the court had become functus officio was rejected, as a restrictive reading would defeat the purpose of the rule and enable the petition to be rendered infructuous by procedural manoeuvre.

Conclusion: The objection was overruled and the applicants were permitted to be substituted as creditors in the main winding-up petition.

Final Conclusion: The application succeeded, and the applicants were allowed to take over and continue the winding-up proceedings as substituted creditors.

Ratio Decidendi: Permission under Rule 101 of the Companies (Court) Rules, 1959 may be granted even after the main winding-up petition has been dismissed at the instance of the original petitioner, and substitution of another creditor is not barred by functus officio.

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