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of <h1>Court grants winding up petition for company in voluntary liquidation, appoints provisional liquidator, and stays legal proceedings.</h1> <h3>Rajbari Ice Factory, In re</h3> The court granted the petition for winding up of a company in voluntary liquidation, appointing a provisional liquidator and staying all legal proceedings ... Winding up - Power to apply to court to have questions determined or powers exercised Issues:1. Petition for winding up of a company in voluntary liquidation.2. Stay of legal proceedings against the company.3. Effect of attachment on creditors' interests.4. Interpretation of statutory provisions.5. Decision on winding up by the Court.Analysis:The judgment involves a petition by a creditor of a company in voluntary liquidation, seeking the winding up of the company under court supervision and a stay on all legal proceedings against the company. The petitioner claims a substantial debt owed by the company and argues for the winding up to ensure fair distribution among creditors. The company is insolvent, and a resolution for voluntary winding up has been passed. However, a decree-holder opposing the petition argues that their attachment should prevail over other creditors' interests.The judge considers the general practice of staying executions in cases of voluntary liquidation, aiming to prevent interference with asset distribution among creditors. Referring to the English Companies Act, the judge notes the provision that execution or attachment must be completed before winding up to retain benefits. However, highlighting the absence of a similar provision in the Indian Companies Act, the judge emphasizes the need for a statutory basis for treating attachments as completed before winding up.In assessing the situation, the judge finds no special circumstances warranting departure from the general practice of staying executions. Considering the interests of all creditors and doubts raised about the genuineness of the petitioner's claim, the judge deems it preferable for the company to be wound up by the court. The judgment appoints a provisional liquidator and stays all legal proceedings against the company, including the execution proceedings in question. Costs are to be borne by the company's assets, with specific provisions for the liquidator's costs and the decree-holder's claim.In conclusion, the judgment upholds the petitioner's request for winding up the company under court supervision, emphasizing the need for fair distribution among creditors. The decision reflects the judge's consideration of the statutory framework, the interests of all creditors, and the circumstances of the case in determining the appropriate course of action for the company in voluntary liquidation.
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