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Issues:
1. Substitution of petitioner in a winding-up petition. 2. Scope of amendments allowed in a fresh petition filed by a substituted petitioner. Analysis: 1. Substitution of Petitioner: - A winding-up petition was initially filed by Bhagat Singh against a transport company, alleging mismanagement and embezzlement. Later, Harbhajan Singh Balhaya sought to be substituted for Bhagat Singh to continue the petition. The court allowed this substitution on the condition that Harbhajan Singh Balhaya would bear all costs if the petition failed. The amended petition filed by Harbhajan Singh Balhaya excluded personal grievances of Bhagat Singh and included new material based on witness evidence. 2. Scope of Amendments in Fresh Petition: - The company objected to the inclusion of fresh allegations in the amended petition by Harbhajan Singh Balhaya, arguing that only necessary amendments to establish locus standi should be allowed. The court considered the relevant rule which permits the substitution of a petitioner and the filing of a fresh petition with desired amendments. The court analyzed the language of the rule, which seemingly allows wide-ranging amendments. - The court deliberated on whether a substituted petitioner could introduce new grounds for winding up or amplify existing allegations. It was determined that while a substituted petitioner could drop certain allegations and draft the petition in their way, the amendments should not depart significantly from the original grounds. The court emphasized that the extent of permissible amplification would vary based on the circumstances of each case. - In this case, the court found that the amended petition did not deviate substantially from the original petition, except for the exclusion of personal allegations. Therefore, the court allowed the amended petition to proceed, as it did not see sufficient reason to disallow it. In conclusion, the judgment addressed the issue of substitution of a petitioner in a winding-up petition and clarified the scope of amendments allowed in a fresh petition filed by a substituted petitioner. The court emphasized that while amendments should not stray too far from the original grounds, a reasonable degree of amplification is permissible. The decision in this case allowed the amended petition to proceed, highlighting the importance of considering the circumstances of each case when determining the extent of permissible amendments.
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