Winding-up petition advertisement requires prior notice to the company, except in exceptional cases with recorded reasons.

Advertisement of a winding-up petition on admission is not automatic; the company court should ordinarily issue notice to the company before directing publication, because premature advertisement can cause serious prejudice if the petition is not bona fide or is being used as pressure tactics. Rule 96 permits different courses at presentation and admission stages, while Rule 24 governs advertisement and Rule 9 preserves inherent powers to secure justice and prevent abuse of process. Simultaneous advertisement may be ordered only in exceptional cases with recorded reasons. The text states that the simultaneous publication direction was set aside, while admission of the petition was otherwise left undisturbed.

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Issues: Whether the company court could, as a matter of course, direct advertisement of the filing of a winding-up petition simultaneously with its admission without first issuing notice to the company.

Analysis: Rule 96 of the Companies (Court) Rules, 1959 contemplates different courses when a winding-up petition is presented, including issuing notice to the company before admission or before giving directions for advertisement. Rule 24 regulates advertisement, while Rule 9 preserves the court's inherent power to make orders to secure the ends of justice and prevent abuse of process. The scheme is intended to protect a company from the serious prejudice that may follow publication of a petition, especially where the petition may be challenged as not bona fide or as being filed for pressure tactics. The power to order simultaneous advertisement exists, but it is discretionary and should be exercised only in exceptional cases with recorded reasons; ordinarily, notice ought to be given before advertisement is directed.

Conclusion: The simultaneous direction for advertisement without notice was held to be incorrect in law and was set aside.

Final Conclusion: The appeal succeeded only to the extent of removing the publication direction, while the admission of the company petition was otherwise left undisturbed.

Ratio Decidendi: In winding-up proceedings, advertisement of the petition upon admission is not automatic; the company court should ordinarily give notice to the company before directing advertisement, and simultaneous advertisement is justified only in exceptional cases supported by reasons.

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