Section 443 - Power of Tribunal on hearing petition. - Companies Act, 1956

Power of Tribunal on hearing petition. 443. (1) On hearing a winding up petition, the Tribunal may [1] (a) dismiss it, with or without costs; or (b) adjourn the hearing conditionally or unconditionally; or (c) make any interim order that it thinks fit; or (d) make an order for winding up the company with or without costs, or any other order that it thinks fit: Provided that the Tribunal shall not refuse to make a winding up order on the ground only that the assets of the company have been mortgaged to an amount equal to or in excess of those assets, or that the company has no assets. (2) Where the petition is presented on the ground that it is just and equitable that the company should be wound up, the Tribunal may refuse to make an order of winding up, if it is of the opinion that some other remedy is available to the petitioners and that they are acting unreasonably in seeking to have the company wound up instead of pursuing that other remedy. (3) Where the petition is presented on the ground of default in delivering the statutory report to the Registrar, or in holding the statutory meeting, the Tribunal may ____ (a) instead of making a winding up order, direct that the statutory report shall be delivered or that a meeting shall be held; and (b) order the costs to be paid by any persons who, in the opinion of the Tribunal, are responsible for the default. -------------------------------------------- Notes:- [1] Sections 443 and 444 substituted by the Companies (Second Amendment) Act, 2002, w.e.f a date yet to be notified. Prior to substitution, section 443 and 444, as amended by the Companies (Amendment) Act, 1960, they read as under: "443. Powers of Court on hearing petition. (1) On hearing a winding up petition, the Court may ____ (a) dismiss it, with or without costs; or (b) adjourn the hearing conditionally or unconditionally; or (c) make any interim order that it thinks fit; or (d) make an order for winding up the company with or without costs, or any other order that it thinks fit: Provided that the Court shall not refuse to make a winding up order on the ground only that the assets of the company have been mortagaged to an amount equal to or in excess of those assets, or that the company has no assets. (2) Where the petition is presented on the ground that it is just and equitable that the company should be wound-up, the Court may refuse to make an order of winding up, if it is of opinion that some other remedy is available to the petitioners and that they are acting unreasonably in seeking to have the company wound-up instead of pursuing that other remedy. (3) Where the petition is presented on the ground of default in delivering the statutory report to the Registrar, or in holding the statutory meeting, the Court may ___ (a) instead of making a winding up order, direct that the statutory report shall be delivered or that a meeting shall be held; and (b) order the costs to be paid by any persons who, in the opinion of the Court, are responsible for the default. Consequences of winding up order 444. Order for winding up to be communicated to Official Liquidator and Registrar. Where the Court makes an order for the winding up of a company, the Court shall forthwith cause intimation thereof to be sent to the 1 [Official Liquidator and the Registrar]." 1 Substituted by the Companies (Amendment) Act, 1960, Act 65 of 1960, section 163, for "Official Liquidator".