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TMI Blog1956 (3) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... ment and embezzlement against the majority group of directors, and also included personal grievances of Bhagat Singh, who alleged oppressive methods and unfair treatment of himself as a director in a prominent minority. The winding up was sought not because the company could not operate profitably but because it was just and equitable, and the only issue framed was on this point. After seven witnesses including Bhagat Singh, petitioner, had given evidence on his behalf he filed a petition on the 5th of August, 1955, stating that he had now been satisfied that the company's accounts were being properly kept, and therefore he did not wish to prosecute the petition any further. When this petition came up before Harnam Singh J. on the 19th of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o exclude a number of allegations made by Bhagat Singh regarding his personal grievances against the majority directors, and to include a certain amount of fresh material including allegations which appear to be based on the evidence given by some of the witnesses produced by Bhagat Singh. The preliminary objection was raised on behalf of the company that since Harbhajan Singh Balhaya was only permitted to conduct the petition already filed by Bhagat Singh, he could not be permitted to include any fresh allegations, This objection was made the subject of a preliminary issue. The relevant rule is 11 in Chapter I of Volume II of the Rules and Orders of the High Court and it reads: "11.( i )Where a petitioner consents to withdraw his peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or was substituted for the original petitioner the petition was amended by stating the debt of the substitute in the place where the original petitioner's debt had been stated. On the other hand it is pointed out that the rule relating to substitution of petitioners in the English Companies (Winding-up) Rules of 1949, rule 37, differs considerably in language from our rule. This rule in fact merely permits the substitution of a creditor or contributory for a withdrawing petitioner and says nothing whatever about amending the petition. It is contended on behalf of the petitioner that according to rule 11( ii ) once a person with a right to present a winding up petition has been substituted for the original petitioner by order of the cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to me that once such a substitution has been permitted, the amendments contemplated by the second part of the rule cannot possibly be restricted, in the light of the language used, to the simple substitution of a statement of the locus standi of the substituted petitioner in the place where the locus standi of the original petitioner was inserted. In the present case the original grounds for winding up consisted both of personal complaints by Bhagat Singh against his treatment at the hands of certain directors and also allegations of mismanagement and embezzlement against the majority directors. Obviously the present petitioner would not wish to pursue the allegations of the original petitioner regarding his personal mistreatment, and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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