1976 (2) TMI 133

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....on the observations of Pennycuick J. in the matter of In re Bostels Ltd. [1968] 38 Comp. Cas. 209 (Ch D) in which case the learned judge had to consider the question of costs. In that case, the original petitioner (the Lawford Asphalte Co. Ltd.), for a compulsory winding-up order after spending GBP 35 to GBP 50 on advertising the petition, accepted payment of its debt and most of its costs from the company. The petition was then amended, pursuant to the order of the court, by substituting another creditor as petitioner, readvertisement being dispensed with and the original petitioner remaining in the proceedings as a supporting creditor. A winding-up order was made in that case on the amended petition. Ultimately, the learned judge in that ....

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....he petition, whose costs are allowed by the court. Mr. Kotwal also submitted that the company has not adopted any contentious disputes and was justified in defending the action, viz., the winding-up petition. On the other hand, Mr. J.I. Mehta, the learned counsel for the petitioners, submitted that the general observations of Pennycuick J. are not of much relevance on the facts of the present case. He pointed out that the conduct of the company has been cantankerous and it had been adopting one proceeding after another. He submitted that rule 338 has no application as it merely makes provision for priorities. Assuming that the practice to which Pennycuick j. referred as prevailing in' England should be followed in India, I am of the v....

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....that the scheme went overboard. The company has been responsible in lengthening the proceedings, in multiplying the proceedings and in making one application after another. Ultimately, who is, to pay for all this music ? The company would have a very small surplus even if I were to accept the plea of the company that it has assets in excess of its liabilities. On the company's own showing, the claims of the depositors and small money-lenders are to the tune of 80 lakhs of rupees. The trading debts are in the neighbourhood of Rs. 30 lakhs. In the meantime, over the years interest has mounted on these claims. Ultimately, it is doubtful whether these unfortunate unsecured creditors will get a slice of even their principal amount. Any payment t....