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TMI Blog1961 (1) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 72,000 out of the total paid-up capita] of Rs. 12,00,000 and also that her minor son, Kanwal Kishore, who was under her guardianship, was holding 7,100 shares valued at Rs. 71,000 and the winding up of the company was sought on the ground that it was just and equitable on account of the alleged oppression of the minority shareholders and various allegations of mismanagement. The petition came before my Lord the Chief Justice for admission on November 30, 1960, when he ordered the issue of notice to the company. Mr. Ved Vyas, advocate, who was present at the time accepted notice on behalf of the company and it was ordered that the matter should be posted for preliminary issue without issue of citation on December 9, 1960. The case actu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he winding up petition in the official Gazette and two newspapers. The learned single judge was of the opinion that the issue of citation was mandatory and that he had no option or discretion in the matter. It may be mentioned that although the company is nominally a public company it is stated without contradiction that substantially it is a private and family company in which, apart from a few shares held by outsiders, roughly 2/9 th of the shares are held by the petitioner and her minor son while about 7/9 th of the shares are held by the opposite party which consists of sons of the late husband of the petitioner by his first wife, and the case of the company, which virtually consists of these sons, is that the company is prosperous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may, if he thinks fit, direct notice to be given to the company before giving directions as to the advertisement of the petition. " Rule 99 reads: "Subject to any directions of the court, the petition shall be advertised within the time and in the manner provided by rule 24 of these Rules. The advertisement shall be in Form No. 48." In addition to these rules, the learned counsel for the company has also relied on the provisions of the general rules. Rule 6 provides that save as provided by the Act or by the Rules, the practice and procedure of the court and the provisions of the Code so far as applicable, shall apply to all proceedings under the Act and these Rules. Rule 9 reads : "Nothing in these Rules shall be deemed to limit or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion appears to me to be very doubtful indeed, and it seems to me that it may equally well be for the purpose of allowing the company to raise any preliminary objections it may have regarding the maintainability of the petition, I am of this opinion because of the serious effects which the advertising of a winding up petition may have on the affairs of even a prosperous company. It may be reasonable to order the immediate advertisement of a winding up petition in a case where the petition is filed by a creditor on the ground that the company is insolvent and unable to pay its debt, but the position appears to be somewhat different in the case of a company which is practically a family affair and the petition is by a contributory for winding ..... X X X X Extracts X X X X X X X X Extracts X X X X
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