1965 (2) TMI 44

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.... the shares is held by the managing director and his relations and friends. In the petition for winding up serious allegations were made to show that it was proper and fit that the company should be wound up. It came first before Mr. Justice K.K. Desai for preliminary orders under rule 96 of the Companies (Court) Rules framed under the Companies Act. Desai J. dismissed the petition in limine. Against his order an appeal, being Appeal No. 32 of 1963, was filed and that appeal was heard by us on November 5, 1963, After hearing counsel on both the sides we made the following order. "In the result, we allow the appeal, admit the petition, give a notice to the company and postpone the giving of the advertisement until after it is heard. The t....

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....umerates the persons or classes of persons who are entitled to make a petition. Section 442 relates to the powers of the court in a winding up petition to stay any proceedings pending in any other court. Section 443 defines the powers of the court on hearing the petition. There is no provision in the Act dealing with procedural matters in relation to winding up petitions. This is left to rules to be made under section 643 of the Act to which we must now turn. Part I of the Company (Court) Rules deals generally with applications. Rule 11 requires that applications made under the sections there referred to shall be made by petition, one of the sections being section 439. Rule 27 relates to the form and time of service of the notice. Rule 2....

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....ition itself regarding the grounds for winding up he would be entitled to reject the same. There can, however, be no question of hearing the company at the stage of admission. In response to the notice under rule 96 the company may show cause why the petition should not be proceeded with or rejected. But then this could only be on grounds which do not involve facts. In the case referred to, at page 1242, the learned Chief Justice says while considering rule 733 of the old Rules : "... In the winding up of a company the creditors are interested, the shareholders are interested, and therefore it is but right that before the court makes a final order on the petition these parties should be heard. But that does not mean that the discretio....