Winding up order recalled after settlement of claims; company petition disposed of as withdrawn and liquidation brought to an end.

A winding up order was recalled after the outstanding claims of creditors and workers were settled, the necessary drafts were produced, and the Official Liquidator raised no objection. With no surviving basis to continue liquidation, the company petition was then permitted to be withdrawn and disposed of as settled. The Court noted that commercial and monetary disputes may be settled at any stage and preserved liberty for any person with a subsisting claim to proceed in accordance with law. The winding up proceedings were brought to an end, the Official Liquidator was discharged, and the company's properties were directed to be handed back in accordance with law after compliance with specified expenses.

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Issues: (i) Whether the winding up order could be recalled on settlement of the outstanding claims and dues. (ii) Whether the company petition could be disposed of as withdrawn after recall of the winding up order.

Issue (i): Whether the winding up order could be recalled on settlement of the outstanding claims and dues.

Analysis: The Application was founded on Section 466 of the Companies Act, 1956, read with Rule 224 of the Companies Act, 1956 and Section 151 of the Code of Civil Procedure, 1908. The claims of creditors and workers had been settled, the requisite drafts were brought before the Court, and the Official Liquidator had no objection. In such circumstances, there was no surviving basis to continue the winding up.

Conclusion: The winding up order was recalled.

Issue (ii): Whether the company petition could be disposed of as withdrawn after recall of the winding up order.

Analysis: Once the dues stood settled and no claims survived despite publication of notice inviting claims, there was no reason to keep the petition pending. The Court also noted that commercial disputes and monetary claims may be settled at any stage, and liberty could be preserved for any person having a subsisting claim to proceed in accordance with law.

Conclusion: The company petition was permitted to be withdrawn and disposed of as settled.

Final Conclusion: The winding up proceedings came to an end, the Official Liquidator was discharged, and possession of the company's properties was directed to be handed back in accordance with law after compliance with the specified expenses.

Ratio Decidendi: A winding up order may be recalled when the outstanding claims are settled and no surviving objection remains, and the company petition may thereafter be disposed of as withdrawn.

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