The court has the power to pass interim orders under Section 443(1)(c) of the Companies Act to secure the ends of justice, even before the winding up order, and can allow the sale of company assets during the pendency of the winding up petition.

( 1 ) THE applicants have filed the above referred company petition for winding up of the company on the ground that there is dead lock in the affairs of the company and also on the ground that the total liability of the company far exceeds the assets.

( 2 ) THE conspectus of the facts given in the petition are that the respondent-company is incorporated under the Companies Act known as Radhesh rubber Pvt. Ltd. It is stated in the petition that there is dead lock in the company and the total liability of the company far exceeds its liability. The respondent No. 2, one of the share-holder and the Director of the Company filed objection statement and contended inter alia therein that the allegations contained in the petition are not true, but nevertheless the fact that the company is not doing any business and that there are heavy bank liabilities, and the company suffered heavy loss, have been admitted. Apart from that, the respondent No. 2 also filed a company petition for winding up of the company.

( 3 ) THIS Court after hearing the parties, prima facie found that as there was no business transacted over the years and the company has already suffered heavy loss and its liability far exceeds the assets and the petitioner and the respondent No. 2 do not see eye to eye and there is dead lock, and the respondent has not seriously objected for winding up of the company, has by its order, dated 3-7-1992 admitted the petition which reads as follows:"i find prima facie case has been made out by the petitioner for winding up under Section 433 (e) of the Companies Act. Respondent has not seriously objected. However, he has filed his objections". But, postponed the consideration to take out publication and posted the hearing of the Company Application No. 644 of 1992 filed by the petitioner-applicant.

( 4 ) THE petitioner who is an applicant in the company application, has sought for an order directing the sale of the assets of the company to one Sri Jamal or to any other willing buyer, who is willing to pay the highest price for the assets of the company. It is averred in the application that the applicants have borrowed money from the State Bank of India. The said loans have been guaranteed by the first applicant as well as her husband, late Sri Ratnakar Shetty, and in fact, it is also guaranteed by the second respondent. The company has sustained accumulated losses of over Rs. 55 lakhs. It is also averred that the second respondent took over the reins of administration of the company, and the company started sustaining heavy losses as a result of which the second respondent had thought of selling the assets of the company in order to pay off the liabilities. In this regard, an advertisement was released in the daily newspaper Deccan Herald, copy of which is produced as exhibit-A. 5-6 enquiries were received, and subsequent thereto one Mr. Jamal came forward to purchase the factory and take over the entire bank liabilities of the company, thereby saving the applicants as well as the second respondent from a certain ruination. As regards the sale of the factory, it is further stated that the second respondent took into confidence of the applicants, there were discussions with the state Bank of India who also agreed orally to the proposal of sale of the factory to mr. Jamal. In fact, Mr. Jamal met the second respondent, and he also expressed his happiness for the proposed sale of the factory in favour of Sri Jamal and even went to the extent of agreeing with the Manager of State Bank of India for the proposed sale of the factory of the second respondent company in favour of Mr. Jamal. But, for the reasons best known, the second respondent went back and has taken a totally unreasonable attitude and has refused to accede to the proposal of sale of the factory as a going concern in favour of Sri Jamal. It is further averred that it is not possible for the company to carry on its affairs profitably. Every days delay results