( 1 ) THIS is an appeal against the order of winding up of Vijayalakshmi Talkies (private) Ltd. , (hereinafter called the Company) made in Company Petition No. 3 of 1963 by our learned brother, Satyanarayana Raju, J. as he then was. This Company was incorporated in May 1960 as a private Company limited by shares, its registered office being located at Masulipatnam. It started its business on august 1, 1962 with a nominal capital as Rs 1,60,000/-divied into 16 equity shares of Rs. 10,000/-each. The total number of its shareholders did not exceed 11 The affairs of the Company did not run smoothly owing to group politics and sharp differences between the shareholders. The Company s liabilities as a result erelcng rose by leaps and bounds. The petitioner, one of the shareholders owning one share of Rs. 10,000/-, in despair, made the application for winding, up. The grounds on which it is based as shown in the petition and vouched for in the affidavit are that the Company is heavily indebted and is unable to pay to the various credirors the debts due which are to the tune of Rs. 2,00,000/- and that the interest on such borrowings itself comes to nearly Rs. 24, 000/- per ye