1983 (5) TMI 157 - HC - Companies Law

Summary

Issues:
1. Jurisdiction of the court to wind up an unregistered foreign company.
2. Existence of assets of the foreign company within the jurisdiction of the court.
3. Compliance with statutory notice requirements under the Companies Act, 1956.
4. Grounds for winding up an unregistered company under sections 582 and 583 of the Companies Act, 1956.

Detailed Analysis:
1. The primary issue in this case is the jurisdiction of the court to wind up an unregistered foreign company. The petitioner, seeking to wind up the company, argued that the court has jurisdiction as the company carries on business within the court's jurisdiction and has assets in India. The respondent, however, contended that the court lacks jurisdiction due to the absence of company assets in India, citing relevant case law.

2. The next issue revolves around the existence of assets of the foreign company within the jurisdiction of the court. The petitioner asserted that the company used to carry on business in Calcutta and still occupies an office room there, suggesting the presence of furniture and records that could be considered as assets. The court acknowledged the need for an inquiry to determine the existence of assets.

3. Compliance with statutory notice requirements under the Companies Act, 1956, emerged as a crucial aspect. The court noted that the petitioner failed to serve the statutory notice under its hand as required by section 583 of the Act. Despite this deficiency, the court considered whether it still had jurisdiction to pass a winding-up order based on the circumstances of the case.

4. Lastly, the grounds for winding up an unregistered company under sections 582 and 583 of the Companies Act, 1956, were deliberated. The court found that the company was in the process of dissolution in Germany, had ceased business in Calcutta, and was unable to pay its debts. These factors led the court to admit the petition, order advertisements, and appoint a provisional liquidator to ascertain the presence of company assets in India before making a final winding-up decision.

In conclusion, the court admitted the petition, directed the publication of advertisements, and set a returnable date for further proceedings. The judgment highlighted the importance of determining the existence of company assets within the court's jurisdiction before making a final winding-up decision to ensure the exercise of jurisdiction is not futile.