TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether an applicant company can seek convening of a meeting of creditors or contributories under section 557 of the Companies Act, 1956 when no creditor or contributory has proved its wishes by sufficient evidence before the Court.
Analysis: Section 557 enables the Court, in matters relating to winding up, to have regard to the wishes of creditors or contributories as proved by sufficient evidence and, if it thinks fit, to direct meetings for ascertaining those wishes. The power is discretionary, but it is exercised only when there is a proved wish of creditors or contributories before the Court. In the present case, despite publication of notice and lapse of substantial time, no secured or unsecured creditor entered appearance, filed affidavits, or otherwise placed material before the Court to establish any wish supporting or opposing the winding-up petition. In the absence of any proved wish, the prerequisite for invoking the discretionary power to convene meetings was not satisfied.
Conclusion: The application for convening a meeting of creditors or contributories was not maintainable and was rightly dismissed.
Final Conclusion: The decision affirms that a meeting under section 557 cannot be directed in the abstract and must rest on wishes of creditors or contributories proved by sufficient evidence before the Court.
Ratio Decidendi: The Court may direct meetings of creditors or contributories under section 557 only where their wishes are proved by sufficient evidence; absent such proof, the discretionary power cannot be invoked.
TaxTMI 
