Fetter on an executing court to not go behind decree is not placed on a Company Judge assessing a creditor’s winding-up petition founded on a decree

There is discretion available to the Company Judge in a creditor’s winding-up petition, both at the time of admission and at the post-advertisement stage; the Company Court may refuse to admit a winding-up petition founded on an ex parte decree if it finds the original claim or cause of action to be substantially mired in doubt.

CASE LAWS DETAILS

DECIDED BY: HIGH COURT OF CALCUTTA, IN THE CASE OF: Coal India Ltd. Vs. Nicco Corporation Ltd., APPEAL NO: C.P. No. 483 of 2009, DECIDED ON June 18, 2010

FACTS

The petitioner has carried an ex parte decree of the City Civil Court and says that upon the company’s failure to discharge such decretal debt, the company is liable to be wound up. A notice under Section 434 of the Companies Act has been issued on behalf of the petitioner and received by the company.

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