Winding up for indebted company and closed business was upheld where no prospect of revival was shown.

A winding-up petition under the Companies Act, 1956 was found maintainable where the company was heavily indebted, its business had ceased, its offices were closed, and no prospect of revival remained. The material before the Court showed that these assertions were not seriously disputed in the counter-affidavit, and the statutory basis for winding up was treated as satisfied. The Court also accepted that public-interest considerations did not bar relief on the facts presented, and the company was held liable to be wound up.

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Issues: Whether the company should be ordered to be wound up under section 433(a) of the Companies Act, 1956 on the ground of indebtedness, closure of business, and absence of prospects of revival.

Analysis: The petition was supported by averments that the company had become heavily indebted, its business had come to a standstill, its offices were closed, and there was no prospect of revival. These assertions were not seriously controverted in the counter-affidavit. On the material before it, the Court found that the statutory basis for winding up was made out, and accepted that the public-interest consideration did not preclude such relief on the facts presented.

Conclusion: The company was liable to be wound up and the petition was allowed.

Ratio Decidendi: Where the facts show that a company has become heavily indebted, has closed its business, and there is no prospect of revival, a winding-up order may be made under section 433(a) of the Companies Act, 1956.

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