Ajoy Nath Ray, J.:

This is an appeal from a receiving order in a winding-up petition whereby the petitioner has been directed to be advertised unless the company, i.e. M/s. Dunlop India Ltd., furnishes a security to the extent of Rs. 50 lakhs.

2. The learned Judge in the Court-below proceeded on the basis that his Lordship had some doubt as to the defence raised by the company and thus his Lordship proceeded to secure partly the claim of the petitioning creditors on the basis of a certain dictum in the case of Ofu Lynx Ltd. vs. Simon Carves India Ltd. reported in AIR 1970 Cal. 418, a decision of a single bench of this Court.

3. A few facts are necessary before we pass on to the law of the matter, regarding the circumstances under which a Company Court would be justified in ordering security for receiving a winding-up petition in default.

4. On February 4, 1987 M/s. Dunlop India Ltd. agreed with the petitioning creditor to obtain their services for the purpose of procurement of an order from one Neyveli Lignite Corporation Ltd. The value of the order ultimately turned out to be above Rs. 22 crore, and the commission for such procurement at the agreed 4½% would come to more t