Company petition procedure: Registry may fix returnable date, and prior judicial acceptance is not required before admission.

A company petition by a contingent or prospective creditor need not first be placed before the Court for prior judicial acceptance before admission and leave to advertise. Under section 439(8) of the Companies Act, 1956 and rules 96 and 97 of the Companies (Court) Rules, 1959, the Court considers admission and leave to advertise after institution and registration, once a prima facie winding-up case is shown and security for costs is furnished where required. The fixing of a returnable date is an administrative step intended to list the matter for admission and further directions, and the Registry may perform that ministerial function.

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Issues: Whether a company petition presented by a contingent or prospective creditor must first be placed before the Court for acceptance before being considered for admission and leave to advertise, and whether the Registry/Company Registrar can assign the returnable date for admission.

Analysis: The relevant scheme under section 439(8) of the Companies Act, 1956 and rules 96 and 97 of the Companies (Court) Rules, 1959 requires the Court to consider admission of the petition and grant of leave to advertise after institution and registration, subject to satisfaction that a prima facie case for winding up is made out and that security for costs is furnished as required. The preliminary fixing of a returnable date is only an administrative step to facilitate listing of the matter for admission and does not require prior judicial acceptance of the petition. That function can be performed by the Registry as ministerial work.

Conclusion: Prior judicial acceptance of the petition before admission is not required, and the Registry may assign the returnable date for admission and further directions.

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