Winding up petitions: employee compensation claims require prior company determination or civil court decree, so petition dismissed.

An ex-employee's attempt to present a winding up petition for unpaid compensation is not maintainable because a claim for loss of office must be converted into an actionable debt by either a company determination in general meeting or a civil court decree; the declaratory power allowing companies to compensate employees does not empower the court to quantify such compensation for winding up purposes. No company meeting resolution or civil decree was produced and admitted arrears were paid after presentation; accordingly the winding up petition was dismissed.

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Issues: Whether the petition under section 433 of the Companies Act by an ex-employee claiming compensation for premature termination is maintainable as a winding up petition.

Analysis: The petitioner was an ex-employee who claimed compensation for premature termination and sought winding up for non-payment. Section 439 defines persons competent to present a winding up petition; a claim for compensation for loss of office requires determination by the company (by general meeting) or a decree from a civil court to constitute a debt actionable in winding up. Section 318 is a declaratory provision authorising companies to compensate specified categories of employees but does not confer jurisdiction on the company court to quantify compensation. No determination by the company in general meeting or civil court decree was produced; admitted arrears of salary were paid after presentation of the petition.

Conclusion: The winding up petition is not maintainable and is dismissed.

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