Winding up for business standstill under Companies Act upheld when operations ceased and liabilities remained unpaid.

A company was held liable to be wound up where its business had come to a standstill and had not been carried on for more than one year under section 433(c) of the Companies Act, 1956. The court found that cessation of operations, inability to conduct business satisfactorily, and failure to repay liabilities were sufficient to establish the statutory ground for winding up. Objections raised by financial institutions did not defeat the application. The winding-up petition was allowed, liquidation was ordered, and directions were issued to protect the interests of the financial institutions and investigate alleged misuse of company assets.

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Issues: Whether the company was liable to be wound up under section 433(c) of the Companies Act, 1956 on the ground that its business had come to a standstill and had not been carried on for more than one year.

Analysis: The company had ceased operations and was unable to conduct business satisfactorily or repay its liabilities. The Court treated the statutory ground for winding up as made out once it was shown that the company's operations had come to a standstill and the business had not been carried on for the requisite period. The opposing financial institutions' objections were not found sufficient to defeat the application.

Conclusion: The ground for winding up under section 433(c) was established and the petition was allowed.

Final Conclusion: The company was ordered to be wound up and the liquidation process was set in motion with directions to protect the interests of the financial institutions and to investigate any alleged misuse of company assets.

Ratio Decidendi: Where a company's business has come to a standstill and has not been carried on for more than one year, the statutory ground for winding up under section 433(c) is made out.

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