Power of Court to stay or restrain proceedings against company while winding up

It is provided under Section 442 that at any after the presenta­tion of a winding up petition and before a winding up order has been made, the company, or any creditor or contributory, may-(a) Where any suit or proceeding against the company is

pending in the Supreme Court or in any High Court, apply to the Court in which the suit or proceeding is pending for a stay of proceedings therein; and

(b) Where any suit or proceeding is pending against the company in any other Court, apply to the Court having jurisdiction to wind up the company, to restrain further proceedings in the suit or proceeding;

and the Court to which application is so made may stay or restrain the proceedings accordingly, on such terms as it thinks fit.

Powers of Court on Hearing Petition (Section 443)

On hearing a winding up petition, the court may -

(a) Dismiss it, with or without cost; or

(b) Adjourn the hearing conditionally or unconditionally; or

(c) Make any interim order that it thinks fit; or

(d) Make an order for winding up the company with or without costs, or any other order that it thins fit:

It is provided that the Court shall not refuse to make a winding up order on the ground only that the assets of the company have been mortgaged to an amount equal to or in excess of those assets, or that the company has no assets.

Where the petition is presented on the ground that it is just and equitable that the company should be wound up, the Court may refuse to make an order of winding up, if it is of opinion that some other remedy is available to the petitioners and that they are acting unreasonably in seeking to have the company would up instead of pursuing that other remedy.