Winding Up Petition
Vishnu Langawat
(Querist) 03 February 2011
This query is : Resolved
Dear All,
During the pendency of a Summary Suit for recovery of the dues against the company, can a creditor initiate a winding up proceeding against such company under Section 433 & 434 of the Companies Act?
Thanks in advance
Regards
Vishnu Langawat
www.vlaindia.com
Ganesh Chavan
(Expert) 03 February 2011
The pendency of a civil suit is not a bar to the admission of winding up petition based on same deb,The Companies Act nowhere prohibits that the proceedings under the act shall or could not lie, where civil suits are pending or they subsequently be filed.The winding up proceeding is not merely for the benefit of the petitioner but of all its shareholders, creditors,etc.
Ganesh Chavan
(Expert) 03 February 2011
The pendency of a civil suit is not a bar to the admission of winding up petition based on same debt,The Companies Act nowhere prohibits that the proceedings under the act shall or could not lie, where civil suits are pending or they subsequently be filed.The winding up proceeding is not merely for the benefit of the petitioner but of all its shareholders, creditors,etc.
Nu.Delhi.Law.Fora.
(Expert) 03 February 2011
Dear Querist,
Companies Act 1956 being special & specific enactment though, does not bar institution of winding up remedy against a company pending any civil litigation against it. And so as the case in CPC while pursuing other remedies since reliefs sought in two different proceedings are different.
Trust this would suffice.
Thanks & regards.
Rabin Majumder
Advocate-on-Record
Supreme Court of India
At:
Ch. 91, Sh. AK Sen Chambers Block - C,
Supreme Court of India
New Delhi - 110001
Basavaraj
(Expert) 04 February 2011
right answer from Ganesh and Delhi Law form. WINDING UP and Summary Suit are in diffeent proceedings and different releifs.
