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Issues:
Admission of winding up petition without pre-admission notice causing prejudice to respondent-company. Analysis: The appeal challenged the ex parte order of admission and advertisement of a winding up petition under the Companies Act, 1956, without a pre-admission notice to the company. The appellant contended that the order was erroneous and prejudicial. The relevant rules and provisions, including Rule 96 of the Companies (Court) Rules, 1959, and Section 443 of the Companies Act, 1956, were cited. The appellant relied on various judgments to support the argument that a winding up petition should not be admitted straightaway without giving the company an opportunity to present its case. The court emphasized the importance of providing a notice before admission to prevent prejudice to a working company. The judgment highlighted that an ex parte admission and advertisement of a winding up petition could harm the company's goodwill and operations. Referring to previous rulings, the court concluded that such actions could lead to serious loss and injury to the company. Therefore, the court set aside the ex parte order and directed the matter to be reconsidered by the company judge after affording the respondent-company an opportunity to be heard and present any objections to the petition's maintainability within a specified timeframe.
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