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TMI Blog1977 (3) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... id-up capital of Rs. 34,200; it was incorporated on 8th February, 1957, but the business came to an end in 1962-63. On 15th April, 1967, the shareholders held an extraordinary general meeting and adopted a special resolution sending the company into a members' voluntary winding-up. The applicant, Shri S. P. Sood, became the voluntry liquidator of the company. The voluntary liquidator realised all the amounts due to the company with the result that Rs. 34,032.28 are now with him as per the statement of accounts made up to 14th April, 1976, annexure "C" attached to the petition. There are two shareholders of the company Mrs. Leela Puri who has one share and Movies Private Ltd., which has 341 shares. The shareholders held a meeting on 9th Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... b-section (1) of that section reads : "518. (1) The liquidator or any contributory or creditor may apply to the court ( a )to determine any question arising in the winding up of a company ; or ( b )to exercise, as respects the enforcing of calls, the staying of proceedings or any other matter, all or any of the powers which the court might exercise if the company were being wound up by the court." The wide language in which this provision is framed seems to suggest that the power of the court in relation to winding-up proceedings, which are exercisable while a company is being wound up by the court, can also be exercised in the course of voluntary winding up. The submission of the petitioner is emphasised by the terms of sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the principle on which the court should act while ordering stay is In re Telescriptor Syndicate Ltd. [1903] 2 Ch. D 174. In that case, the court detailed various points for and against ordering a stay of the winding up and decided that there was no ground for staying the winding up on the facts as they were. The court, however, observed that, at a later date, the official receiver could report whether all the liabilities and creditors and contributories had been settled and the debts had been paid and whether the members were prepared to reduce their share capital by surrendering and cancelling their bonus shares, then the court would "as at present advised be prepared to stay the proceedings in the winding up". Thus, there is no doubt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is equal to the total paid-up capital of the company which is Rs. 34,200. It is just as if the company was starting business with a fresh start. I do not find any reason to hold that it will be detrimental to any one if the company is re-started. There are some funds with the company, and the nominal capital is Rs. 5,00,000 of which only shares worth Rs. 34,200 have been issued. It is quite possible for the company to expand its share capital. In any case, the company is not now any worse off than it was when originally incorporated. In the circumstances, and particularly, in view of the fact that the management wants to revive the company and there seems to be no impediment whatsoever, I proceed to allow this petition. Consequently, I st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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