1999 (3) TMI 541

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....e company no longer functions for which it was established in terms of Articles and Memorandum of Association it has lost its substratum as the main object for which the company was incorporated can no longer be achieved. The company has divested its assets and has no income arising out of its main object. It is further pointed out that the 10th Annual Report for the year 1995-96 ending 31-3-1996 under the heading of sale and other income shows that there is no income from sale but only interest income. Some other facts have been set out. It is, therefore, contended that it is just and equitable that the company be wound up. The petitioners have also prayed for appointment of the Official Liquidator as provisional Liquidator. 2. The comp....

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....(b)The case as pleaded and stand of the petitioner does not merit admission of the petition. (c)Petitioners have made false and irrelevant allegations. 5. In the present case, it is not in dispute that the plant and machineries of the company have been sold. It is further not in dispute that the main object of the company is not being carried out since 18-9-1995. The balance sheet as of 31-3-1996 shows income only from interest and from no business activities. In other words the company is no longer fulfilling the objectives for which it was set up. Even the case of the company is that they are considering voluntary winding up. Their only stand is if the company is wound up it will not be possible to pursue the income-tax assessments ....