1954 (4) TMI 25 - HC - Companies Law

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

Summary

Issues: Proper procedure for liquidator appointment, discretion of trial judge, relevance of creditors' wishes, control of company by shareholder, consideration of creditors' wishes, retrial order

In this case, the Privy Council considered the proper procedure for the appointment of a liquidator and the discretion of the trial judge in ordering a compulsory winding up. The Court emphasized the importance of allowing the liquidator to lead evidence and considered the relevance of creditors' wishes in the winding up process. The Court highlighted that even if a company is controlled by one shareholder, a voluntary winding up can still be conducted with due regard to the interests of the creditors. The judgment referenced the case of In re Medical Battery Co. to illustrate circumstances where a liquidator may be disqualified from acting impartially. The Court directed a retrial of the petition, emphasizing the need to consider all evidence available and the wishes of the creditors. The Court declined to give direction on whether creditors' wishes should be ascertained through a meeting under the Ordinance, leaving it to the judge overseeing the retrial. The appeal was allowed, orders of the Court of Appeal and the trial judge were set aside, and the respondent was directed to pay the costs of the appeal and the hearing in the West African Court of Appeal, with costs of the hearing before Gregg J. to be determined after the retrial.