Winding-up petition admission may stand where a prima facie case exists and no abuse of process is shown.

Admission and advertisement of a winding-up petition will not be revoked where the record discloses a prima facie case and no material shows mala fide intent or abuse of process. The court held that the petitioner's allegations of indebtedness, pending suits, criminal proceedings and other supporting materials were sufficient to justify continuation at the admission stage. It also held that the pendency of oppression and mismanagement proceedings did not, on the pleaded grounds, bar the winding-up petition. The request to revoke admission and advertisement was therefore rejected, and the winding-up proceedings were allowed to continue in accordance with law.

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Issues: Whether the admission and advertisement of the winding-up petition should be revoked on the ground that the petition was not maintainable or was an abuse of process.

Analysis: The relevant company rules permit the court, at the stage of admission, to issue notice to the company, to admit the petition, and to direct advertisement. The court may also revoke admission or refuse advertisement where the materials disclose no prima facie case or where the petition is shown to be mala fide or an abuse of process. Applying these principles, the court found that the petition disclosed substantial allegations of indebtedness far in excess of assets, pending suits and criminal proceedings, and other materials supporting a prima facie case for winding up. The record did not show that the petition was filed with ulterior motive or in abuse of the process of court. The pendency of oppression and mismanagement proceedings did not bar the winding-up petition on the grounds pleaded.

Conclusion: The request to revoke the admission and advertisement of the winding-up petition was rejected.

Final Conclusion: The company application failed, and the winding-up proceedings were left to continue in accordance with law.

Ratio Decidendi: Admission and advertisement of a winding-up petition may be revoked only when the petition is shown to lack a prima facie basis or to be mala fide or an abuse of process; where such materials exist, the court will not interfere at the admission stage.

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