B. P. JEEVAN REDDY, J.

( 1 ) THIS petition is filed by three share-holders of "hyderabad Vanaspathy ltd. ", a Public Limited Company, having its registered office at Hyderabad for winding up the company on the ground that it is unable to pay its debts, within the meaning of clause (e) of Section 433 of the Companies Act, 1956. The Kespondent-Company has raised an objection as to the maintainability of the petition.

( 2 ) THE petitioners say that tne Respondent-Company was incorporated in June, 1970. The share capital of the company is Rs. 50 Lakhs, divided into 10,000 cumulative redeemable preference shares of Rs. 100/- each, and 4,00,000 equity shares of Rs. 10/-each. The three petitioners hold 1,000; 1800, and 2,200 redeemable cumulative preference shares respectively, of a total value of Rs. 5 Lakhs. These shares, carrying a dividend of 9. 5%, were issued on 7-1-1971 and were redeemable at par after 15 years from the date of allotment. The date of allotment is 8-2-1971. When the petitioners asked for redemption of the shares, the Board of Directors, instead, of redeeming the same, decided to postpone the payment for five years. They convened a General-Body meeting on 29-3-1986, w

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