Can we file for company wind-up if summary suit is pending

753 votes

No, Arbitration clause cannot bar High Court to admit winding up petition.
The petition for winding up cannot be treated as one for recovery of an amount of debt from the company William Jacks & Co. (India) Ltd. v. Saraswati Industrial Syndicate Ltd. [1986] 59 Comp. Cas. 876 (Punj. & Har.) and Hind Mercantile Corpn. (P.) Ltd. v. J.H. Rayner & Co. Ltd. [1971] 41 Comp. Cas. 548 (Mad.). The jurisdiction of the company court will not be taken away by the mere existence of an arbitration clause Maruti Ltd. v. B.G. Shirke & Co. (P.) Ltd. [1981] 51 Comp. Cas. 11 (Punj. & Har.) and Haryana Telecom Ltd. v. Sterlite Industries (India) Ltd. [1999] 97 Comp. Cas. 683/22 SCL 156 (SC). The claim in a petition for winding up is not for money. The petition filed under the Companies Act would be of the effect that the company has become commercially insolvent and, therefore, should be wound up. The power to order winding up of a company is contained under the Companies Act and is conferred on the court. An arbitrator, notwithstanding any agreement between the parties, would have no jurisdiction to order winding up of a company.
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Advocate Rishabh Jain LawRato

801 votes

Hello client
As oer your query is concern ur a company who have got huge dept against you due to which number of cases are pending against you it includes summery suits, arbitration matters etc. After this also you can file wimding up petition so you arr able to relex your self from all the cases and hedaches.its allowed but with a good advocate.

Advocate Vishwanath Pratap Singh LawRato

948 votes

I go through the problem as shared by you. But you can't file the winding up petition for the company against whom two matters are already pending. First wait to dispose of the 2 matters and then pursue for the voluntary winding up process as it is easier process and less time consuming then winding up by the court.

Advocate Sumit Behl LawRato