Law: Companies Act (VII of 1913)

Section: 161

(a) Companies Act (VII of 1913), S. 161-Petition for winding up of company- Ordinarily to be decided with help of affidavits submitted by parties-Although taking down of oral evidence n of prohibited yet petition cannot be made to stand over for a long period where no difficulty in reaching decision on basis of affidavits alone. A petition under section 162 of the Companies Act, 1913, is rot a suit for the recovery of a debt, and should not be treated by the company as such. The petition is to be decided on the basis of the provisions contained in section 162 of the Companies Act, 1913, ordinarily with the help of affidavits submitted in accordance with statutory rules. This cannot be disputed. What has sometimes been disputed on the contrary is the power of the Court to record oral evidence. In In re Chapel House Colliery Co. (1883) 24 Ch. D 259, it is stated that the Court will not, as a rule, order a petition to stand over for a lengthened period as it would not be just to the company. Expedition is the very essence of winding up proceedings, and the interests not only of the company but an element of public policy in regard to commercial morality also, should be considered in the disposal of winding up petitions. Veeramachineni Seethiah v. Bode Venkatasubbiah A I R 1949 Mad. 675 and In re : Chappel House Colliery Co. (1883) 24 Ch. D 259 ref. (b) Companies Act (VII of 1913), Ss. 162 & 174-Winding up, petition for-Ascertaining wishes of creditors and contribu tors-Discretion of Court-Company, after having run at loss since inception without any prospects of resuscitation, proving its commercial insolvency-Case, in circumstances, held, eminently suitable for order to wind tip. Mst. Pranlachhi Kuer v. Jageshar Sahi 106 I C 423 ; Coal fields of Burma Ltd. v. H. H. Johnson A I R 1925 Rang. 128 and Muhammad Amin Bros. Ltd. v. Dominion of India and others A I R 1952 Cal. 323 distinguished. Greenwood & Co.'s case (1900) 2 Q B 306; In re: Chapel House Colliery Co. (1883) 24 Ch. D 259 and D. Davis & Co. Ltd. v. Brunswick (Australia) Ltd. A I R 1936 P C 114 ref. D. Davis & Co. Ltd. v. Brunswick (Australia) Ltd. A I R 1936 P C 114 ; Ernest Hugh…