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Issues: Whether the company's substratum had disappeared so as to justify a compulsory winding up on the ground that it was just and equitable to wind it up.
Analysis: Relief under section 153C of the Indian Companies Act, 1913, required a foundation that would itself justify a winding up order on just and equitable grounds. The governing principle is that substratum fails only when the main or primary object of the company has become impossible of fulfilment, not merely because the business has been suspended, shifted, or temporarily abandoned. The memorandum of association had to be construed to determine whether any one object was the dominant object or whether the several objects were independent. On that construction, the objects were independent and the leasing of the factory under an authorised clause did not destroy the company's essential purpose. Even otherwise, the evidence showed no true abandonment and no impossibility: the factory lease was adopted to preserve the business during adverse conditions, the company continued to hold out a prospect of resuming operations, and it remained capable of trading at a profit in the future.
Conclusion: The substratum of the company had not failed and no ground was made out for compulsory winding up on just and equitable grounds.
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