1989 (5) TMI 257

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..... G.R. Majithia, J. This is a creditor's petition under section 439, read with sections 433( e ) and 434 of the Companies Act, 1956, (for short "the Act"). The averments in the petition briefly are as follows: The respondent is indebted to the petitioner-company in the sum of Rs. 17,49,865.90. It is also liable to pay interest at the rate of 22.75 per cent, per annum. A notice under sectio .....

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..... 1)( a ) of the Act and this entitles the petitioner to an order for winding up the company. I am afraid the submission of learned counsel is not well-founded. The apex court in Harinagar Sugar Mills Co. Ltd. v. M. W. Pradhan [1966] 36 Comp Cas 426 (SC), quoted with approval the following passage from Palmer's Company Precedents, Part II, 1960 edition, page 25 : "A winding-up petition is a .....

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..... r to wind up exists, but its exercise is governed by considerations of propriety. In Aluminium Corporation of India Ltd. v. Lakshmi Rattan Cotton Mills Co. Ltd. [1970] 40 Comp Cas 259 ; AIR 1970 All 452, which arose on a creditor's petition to wind up the respondent company, it was held thus (headnote of AIR); "The fact that the company is unable to pay its debts, does not necessarily entitl .....

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