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Petition for winding up a company under section 439 of the Companies Act, 1956 based on mismanagement allegations. Analysis: The petitioner sought the winding up of Krishnayapalem Life Irrigation Company Limited due to alleged gross mismanagement, including improper accounts maintenance, failure to issue share certificates, unauthorized canal digging, and water supply to non-members. The company's authorized capital was Rs. 2,00,000, with issued and subscribed shares of Rs. 1,00,000. The company's objective was to supply water for irrigation. The petitioner, holding 14 shares, was supported by six other members with a total of 27 shares. The petitioner's father and uncle were previously involved in the company's management. The petitioner, supported by evidence and exhibits, alleged mismanagement during his tenure as a director. The respondent contested the petition, presenting evidence and exhibits. The company was incorporated in 1954, and various committees were formed to address concerns regarding accounts and operations. The petitioner's family members had significant roles in the company's management. The petitioner's complaints led to reports and committee investigations, but the majority of shareholders opposed the petition, expressing satisfaction with the company's management. The petitioner sought winding up under section 433(f) of the Companies Act, claiming it was just and equitable. Judicial scrutiny of "just and equitable" highlighted the need for substantial grounds beyond mere mismanagement. The court found the petitioner's allegations unsubstantiated, including improper accounts maintenance, unauthorized canal digging, and non-issuance of share certificates. The court dismissed the petition, noting the frivolous nature of the charges and the lack of evidence supporting an investigation into the company's affairs. In conclusion, the court dismissed the petition for winding up the company, emphasizing the lack of substantiated claims and the absence of grounds for further investigation. The petitioner's motives were questioned, and the court found no justification for directing an inquiry into the company's affairs. The petition was dismissed with costs.
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