Pending scheme under company law does not bar hearing of a winding up petition; stay refused.

A pending proposal for a scheme under Section 153 of the Indian Companies Act, 1913 did not justify staying a winding up petition. The Court reasoned that the existence of a proposed scheme was no reason to delay hearing of the winding up application, which should be considered at the earliest possible moment. It further noted that even an order for winding up would not prevent a proper scheme from later being considered. The request for stay was therefore rejected and the winding up petition was allowed to proceed.

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Issues: Whether the winding up petition should be stayed pending consideration of a scheme proposed under Section 153 of the Indian Companies Act, 1913.

Analysis: A petition for winding up and a proposal for a scheme under Section 153 were both before the Court. The existence of a proposed scheme did not furnish any reason to prevent the winding up application from being heard. The Court held that the winding up petition ought to be considered at the earliest possible moment and that even an order for winding up would not prevent a proper scheme from being considered.

Conclusion: The request for stay was rejected and the winding up petition was permitted to proceed.

Final Conclusion: The appeal failed, and the Court affirmed that a proposed scheme under Section 153 did not justify delaying the hearing of the winding up petition.

Ratio Decidendi: The pendency of a scheme under Section 153 of the Indian Companies Act, 1913 does not bar or postpone consideration of a winding up petition.

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