9911796707
TMI Blog1969 (12) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... lly insolvent and is unable to pay its debts, that there has been increase in the loss from year to year, that the affairs of the company are being mismanaged and that it is, therefore, just and necessary that the company should be wound up. 2. The petitioner is the wife of Subbaraya Chettiar, the Managing Director of the respondent company. The Managing Director has sworn to a counter-affidavit stating that there is misunderstanding between him and his wife, that the petitioner has come forward with this application to cause annoyance to him on account of the family quarrel, that the petitioner is neither a share-holder nor a creditor and that he has advanced his own money and made entries in the name of the petitioner benami for his be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not chosen to file an affidavit in support of the allegation of the petitioner. But in the family quarrel, the son seems to be on the side of the mother, the petitioner. 5. It is no doubt true, as seen from the report of the Registrar of Companies and the auditors' report, that the company is not commercially solvent and that the affairs of the company are not being conducted in such a way as they should be conducted. But the question is whether it is just and equitable that the company should be wound up. As already pointed out, this petition appears to be the result of estrangement of feeling between the petitioner and her husband, the Managing Director. The explanation of the Managing Director is that ever since the incorporatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Managing Director from contending that the petitioner is only his benamidar. The object of the section appears to relieve the company from any obligation to take note of equitable interests in its shares and also to preclude any person claiming an equitable interest in shares from treating the company as a trustee in respect thereof. All that the section says is that no notice of any trust etc., shall be entered on the register of members of debenture-holders. The register is a notice to persons dealing with the company as regards the ownership of the shares or debentures. The object of Section 153 seems to be that such persons dealing with the company may not be affected by the entry of any kind of trust. Therefore, I do not see any ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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