1984 (3) TMI 345 - HC - Companies Law

Right to present winding-up petition where company is being wound-up voluntarily or subject to courts supervision

Summary

Issues:
1. Application for staying proceedings in Company Petition No. 1 of 1983.
2. Refusal of advertisement of Company Petition No. 1 of 1983.
3. Revocation of the order of admission of Company Petition No. 1 of 1983.

Analysis:
The respondent filed an application seeking relief from further proceedings in Company Petition No. 1 of 1983, objecting to the advertisement of the petition and requesting the revocation of the order of admission. The respondent, an ex-employee, alleged non-payment of dues by the company and sought winding up under the Companies Act. The court noted multiple adjournments for settlement discussions between the parties. The applicant argued that the petition was an abuse of process to pressure the company for debt recovery without civil court recourse. The respondent contended entitlement to dues and the company's insolvency. The court referred to legal precedents allowing the revocation of an admitted petition and noted the respondent's objections as lacking merit. The court considered whether the applicant's conduct precluded the plea for revocation at a late stage, emphasizing the company's inaction despite filing the revocation application. The court highlighted the applicant's failure to press the plea during proceedings, indicating laches and lack of bona fides. Ultimately, the court dismissed the application, finding the applicant disentitled due to its conduct of not pursuing the revocation plea diligently, effectively waiving the right by abandonment. The court refused to entertain the plea based on the applicant's conduct, leading to the dismissal of the application.