NATIONAL UNIVERSITY OF STUDY AND RESERACH IN LAW, RANCHI

COMPANY LAW

MOOT PROBLEM V

A company Limelight Ltd. was incorporated with the main object of setting up a cement factory
for which purpose it leased a limestone quarry from the government. Despite best efforts of the
Company, adequate finances were not available and a resolution for voluntary winding up at a
shareholders meeting was passed.

The assets of the company like furniture, machinery, etc. except for the registered office and
the lease of the mine, were sold off and the claims of the creditors were met with. However,
the formalities for dissolution of the company were not completed.

The shareholders, at a following meeting were of the opinion that the company and its business
had great potential and they decided to revive the company, as the lease still existed in the name
of the company and it was yet to be auctioned. The shareholders filed a petition before the
Tribunal for a stay on the voluntary winding up, and for reviving of the company on the grounds
that the limestone quarry lease had great potential and production of increased quantity of
cement was in national interest.

The matter is now before the Company Law Tribunal.

ISSUE:
1. Whether such a petition is maintainable?
2. What is the validity of the resolution to revive the company after formalities for
dissolution begin?