https://www.taxtmi.com/caselaws?id=237481 The power under section 466 of the Companies Act, 1956 to stay winding up is discretionary and requires the court to be satisfied that the application is bona fide, commercially proper and genuinely directed to revival of the company. Mere willingness to pay creditors or settle claims is insufficient; the court must also ensure that the proposal does not amount to a private takeover of assets or bypass the statutory winding-up and compromise regime. On the facts described, no genuine revival plan for the textile business was shown and the real object appeared to be acquisition of valuable lands for real estate development. The application for a permanent stay of winding up was therefore dismissed. en-us Fri, 14 Oct 2011 00:00:00 +0530 Sat, 28 Sep 2013 10:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=237481 The power under section 466 of the Companies Act, 1956 to stay winding up is discretionary and requires the court to be satisfied that the application is bona fide, commercially proper and genuinely directed to revival of the company. Mere willingness to pay creditors or settle claims is insufficient; the court must also ensure that the proposal does not amount to a private takeover of assets or bypass the statutory winding-up and compromise regime. On the facts described, no genuine revival plan for the textile business was shown and the real object appeared to be acquisition of valuable lands for real estate development. The application for a permanent stay of winding up was therefore dismissed. Case-Laws Companies Law Fri, 14 Oct 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=237481