Allahabad High Court: Winding Up Under Section 433(f) Only if Company Threatens to Commercial World

The Allahabad High Court has held that a company can be wound up under Section 433(f) of the Companies Act only if the Court finds its continued existence is a threat to the commercial world.

Justice Pankaj Bhatia ruled that for winding up on “just and equitable” grounds, the Court must determine the company’s status poses risks to the broader business environment.

In the present case, the Court rejected the winding-up plea, noting the respondent company’s conduct did not endanger the commercial world and directed payment of admitted dues instead.