RAJAHMUNDRY ELECTRIC SUPPLYCORPORATION LTD. vs A. NAGESWARA RAO AND OTHERS:

The Supreme Court held that the validity of a petition under Section 153-C of the Indian Companies Act must be judged based on the facts at the time of its presentation, and subsequent events, such as the withdrawal of consent by some members, do not affect its maintainability. The Court clarified that for an order under Section 153-C to be made, there must be sufficient grounds for winding up under Section 162, and that mere misconduct by directors does not warrant winding up unless additional circumstances justify it. The Court upheld the High Court's decision to appoint administrators to manage the company’s affairs.