Winding up petitions cannot be withdrawn unilaterally after a winding up order, as all creditors and contributories are affected.

Once a winding up order is made, the petition is treated as proceeding for the benefit of all creditors and contributories under section 447 of the Companies Act, 1956. On that basis, the petition no longer remains an individual proceeding that the original petitioner can withdraw unilaterally. The earlier order permitting withdrawal was held to be without jurisdiction because consent of all creditors and contributories was required in that changed procedural setting. The order allowing withdrawal was recalled and the request to withdraw the winding up petition was dismissed.

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Issues: Whether an order permitting withdrawal of a winding up petition could stand after a winding up order had been passed and, in that context, whether the petition could be withdrawn without the consent of all creditors and contributories.

Analysis: Section 447 of the Companies Act, 1956 provides that an order for winding up operates in favour of all creditors and contributories as if made on a joint petition. On that footing, the character of the proceeding changes once a winding up order is made, and the petition is no longer maintainable as an individual proceeding capable of unilateral withdrawal by the petitioner. The objection that the court could not reconsider its earlier order was not accepted, and the earlier withdrawal order was treated as having been made without jurisdiction.

Conclusion: The order permitting withdrawal was recalled and the request to withdraw the petition was dismissed.

Final Conclusion: A winding up petition, after the making of a winding up order, cannot be withdrawn unilaterally by the petitioner, and an order allowing such withdrawal is liable to be set aside as without jurisdiction.

Ratio Decidendi: Upon a winding up order being made, the petition is treated as one for the benefit of all creditors and contributories, so unilateral withdrawal by the petitioner is impermissible without their consent.

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