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Issues:
- Application for winding up of a company under sections 434 and 439 of the Companies Act, 1956. - Jurisdiction of courts under section 10 of the Companies Act. Analysis: The judgment pertains to an application for the winding up of a company, N.C.L. Industries Ltd., based on the ground that it is unable to pay its debts, as per sections 434 and 439 of the Companies Act, 1956. The petition, styled as a "creditor's application," seeks to invoke the powers under the specified sections of the Act. Section 434 of the Act outlines the conditions under which a company is deemed unable to pay its debts, which includes non-payment of a sum exceeding five hundred rupees despite a creditor's demand. The petitioner alleges that despite multiple registered letters, the company has failed to settle the outstanding amount claimed by the petitioner. The judgment also delves into the jurisdiction of courts as per section 10 of the Companies Act. Section 10 delineates the jurisdiction of courts concerning company matters. It stipulates that the court having jurisdiction under the Act is the High Court where the registered office of the company is situated, except where jurisdiction has been conferred on a District Court. The provision clarifies that the registered office's location determines the court's jurisdiction for winding up companies. In this case, the petition acknowledges that the company's registered office is in Hyderabad. Consequently, the court concludes that it lacks jurisdiction to entertain the winding-up application due to the specific provisions outlined in section 10 of the Act. In light of the statutory provisions governing court jurisdiction in company matters, the High Court rules that it does not have the requisite jurisdiction to entertain the winding-up application for N.C.L. Industries Ltd. As the registered office of the company is in Hyderabad, the court's jurisdiction is limited to the High Court having jurisdiction over the location of the company's registered office. Therefore, the application for winding up is not entertained by the court, emphasizing the importance of adhering to the statutory framework delineating court jurisdiction in such cases.
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