Godrej vs. Special Court (1997)
company clat_ug beginner real_caseYou people remember this case? I swear, I did it for our CLAT UG exams last year, and still gets me pumped up Godrej was a real estate company facing bankruptcy. The case is about interpretation of Section 433 of the Companies Act, 1956, which talks about winding up of companies. The SC ruled that a company can be wound up even if it's solvent. Now, here's the cool part โ the court held that a company can be wound up if it's not able to pay its debts, even if it has enough assets to pay them off. What do you guys think about this judgment? Should a company be wound up solely based on its inability to pay debts, or do you think the court should look into other factors too? I personally agree with the decision, but I'd love to hear your thoughts!