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of <h1>Company liable for winding up under Companies Act, 1956 for default in payment and fraud</h1> The Court found the respondent company liable for winding up under sections 433(b), (c), and (f) of the Companies Act, 1956 based on default in payment to ... Winding up - Circumstances in which a company may be wound up Issues:Company petition filed under section 433(f) read with section 439(6) of the Companies Act, 1956 for winding up the respondent-company based on default in payment to investors and involvement in fraudulent activities.Analysis:The Registrar of Companies filed a company petition seeking to wind up the respondent-company under section 433(f) read with section 439(6) of the Companies Act, 1956. The petition was based on the default in payment to investors by the company, Century Consultant Ltd., as revealed in a report by the Central Bureau of Investigation (CBI). The CBI report highlighted criminal cases against the director of Century Consultant Ltd. for cheating investors and financial institutions through forgery and fraud. The Central Government, upon CBI's recommendation, issued a sanction for the winding up petition. The financial position of the company as of 31-3-2000 was disclosed in the petition, showing liabilities and assets, indicating insolvency.The company petition was advertised as per the Companies (Court) Rules, 1959, and the official liquidator was appointed provisional liquidator. Despite summons being returned due to the absence of the company at the provided address, notices were published in newspapers and the official gazette. The official liquidator reported that the ex-director of the company handed over cash balance and financial documents, promising to provide additional information.In response, the ex-director filed a counter affidavit denying involvement with Century Consultants Ltd. or its directors and expressing no objection to the winding up of the company. After considering the investigation by the CBI, notices issued by the Department of Company Affairs, and the absence of objections to the published notices, the Court found the respondent company liable for winding up under sections 433(b), (c), and (f). Consequently, the company petition was allowed, and the respondent company was directed to be wound up. The official liquidator, previously appointed as provisional liquidator, was now appointed as the Liquidator of the Company under section 449.
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