Judgment

RAY, J. :- This is an appeal by certificate from the judgment dated 3 April, 1970 of the High Court of Bombay confirming the order of the learned Single Judge refusing to wind up the, respondent company.

2. The appellants are a partnership firm. The partners are the Katakias. They are three brothers. The appellants carry on partnership business in the name of Madhu Woollen Spinning Mills.

3. The respondent company has the nominal capital of Rs. 10,00,000 divided into 2000 shares of Rs.500 each. The issued, subscribed and fully paid up capital of the company is Rs. 5,51,000. divided into 1,103 Equity shares of Rs. 500 each. The three Katakias brothers had three shares in the company. The other 1,100 shares were owned by N. C. Shah and other members described as the group of Bombay Traders.

4. Prior to the incorporation of the company there was an agreement between the Bombay Traders and the appellants in the month of May, 1965. The Bombay Traders consisted of two groups known as the Nandkishore and the Valia groups. The Bombay Traders was floating a new company for the purpose of running a Shoddy Wool Plant. The Bombay Traders agreed to pay about Rs. 6,00,000 to the appellants