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TMI Blog1973 (9) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... in the district of Shahabad. There were only two directors of the company, one of them Akshay Kumar Dubey, being the managing director. The last balance-sheet filed by the company was for the year ending 31st December 1970 It would appear therefrom that the cash in hand which the company had at the relevant date was a sum of Rs. 1,073.80. It is said that the reserve surplus was shown to be nil. Further, that in the year 1969 there was no sale or income and that there was a deficit of Rs 105 in respect of the first year since the incorporation of the company. In respect of the next and the last year the sale or income is shown to be nil Further it would appear that no profit and loss account had been filed when the balance-sheet afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned.... This case has, accordingly, been heard ex parte . The only question for consideration is as to whether an order of winding up the company should be made on grounds mentioned in clauses ( c ) and ( f ) of section 433 of the Companies Act, 1956. Section 433( c ) and ( f ) are in the following terms: "A company may be wound up by the court, ...... ( c )if the company does not commence its business within a year from its incorporation, or suspends its business for a whole year;..... ( f )if the court is of opinion that it is just and equitable that the company should be wound up". It is quite obvious from the facts stated earlier that although the company was incorporated in January, 1969, it did no business whatsoever with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tances of the case. In this connection I would refer to the cases of In re Cine Industries and Recording Co. Ltd. [1942] 12 Comp. Cas. 215 (Bom.) and O. P. Basra v. Kaithal Cotton and General Mills Co. Ltd. [1961] 31 Comp. Cas. 461 (Punj.) These decisions have laid down the propositions that the substratum of the company must be deemed to have gone when: ( a ) the subject-matter of the company is gone, or ( b ) the object for which it was incorporated has substantially failed, or ( c ) it is impossible to carry on the business of the company except at a loss, which has been construed by the Privy Council to mean that there is no reasonable hope that the object of the trading at a profit can be attained, or ( d ) the existing and pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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