Winding-up order can be recalled where the company can pay its debts and no other creditor supports liquidation.

Where a winding-up order is based on a creditor's petition, the court may recall it if the company is able to discharge its debts and no other creditor appears in support of winding up. On the facts noted, the notice was issued for non-payment of goods supplied, but the company stated it could pay its liabilities and the petition lacked wider creditor support. The winding-up order was therefore recalled and the company petition dismissed as withdrawn.

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Issues: Whether the order directing winding up of the company should be recalled when the company was in a position to pay its debts and no other creditor had appeared in support of winding up.

Analysis: The application was by the company seeking recall of the winding-up order passed on the creditor's petition. The notice under section 434(1)(a) of the Companies Act, 1956 had been issued for non-payment of the price of goods, and the winding-up petition had been presented under section 433(e) of the Companies Act, 1956. As no other creditor appeared in support of winding up and the company was stated to be able to discharge its debts, continuation of the winding-up order was found unnecessary.

Conclusion: The winding-up order dated 4 July 1991 was recalled, and the company petition was dismissed as withdrawn.

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