Failure to commence business after incorporation justified winding up where the company remained inactive and non-compliant.

A company that failed to commence business after incorporation, with no fully subscribed or paid-up shares, no contribution to share capital, no board meeting, and no statutory returns filed, was found to fall within the winding-up ground under section 433(c) of the Companies Act, 1956. The court also noted that the promoters were responsible for the failure to start operations and that no useful purpose would be served by keeping the company alive on record, so winding up was directed.

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Issues: Whether the respondent-company should be wound up on the ground that it failed to commence business after incorporation and attracted winding up under section 433(c) of the Companies Act, 1956.

Analysis: The company was incorporated in 1992, but no business was undertaken, no shares were fully subscribed or paid for, no contribution was made to the share capital, no meeting of the Board was held, and no statutory returns were filed. The materials also showed that the promoters were responsible for the company's inability to commence business, and no useful purpose would be served by keeping the company alive on record.

Conclusion: The ground for winding up was made out and the company was directed to be wound up.

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