Winding up for deadlocked management and failed objects was upheld where the company had ceased business and corporate functioning.

A company was found liable to be wound up where its objects had substantially failed, management had broken down into deadlock, and continued existence served no useful purpose. The Court relied on long cessation of business, absence of effective corporate management, failure to file annual returns and balance sheets, unresolved liabilities, and an admitted special resolution for winding up. On that record, it treated the company as effectively closed for years with no surviving business activity or functioning administration, and held that winding up was appropriate in the interests of justice and public interest.

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Issues: Whether the company was liable to be wound up on the ground that its objects had substantially failed, its management had broken down into a deadlock, and no useful purpose would be served by its continuance.

Analysis: The petition was supported by material showing long cessation of business, absence of effective management, failure to file annual returns and balance sheets, unresolved liabilities, and an admitted special resolution for winding up. On the record, the Court found that the company had remained closed for years, no business activity or corporate functioning survived, and continuation of the company would serve no purpose. The Court treated these circumstances as making winding up appropriate in the interest of justice and public interest.

Conclusion: The company was held liable to be wound up and the petition was allowed.

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