The Deputy Commissioner of Taxation, as a creditor, may seek winding up on the just and equitable ground based on a justified lack of confidence in the conduct and management of a company, including reliance on public interest and commercial morality considerations. A pattern of cycling a business through successive corporate entities to avoid tax obligations, even where the current entities are solvent, can constitute a strong enough case to justify winding up a solvent company. Compliance with tax obligations achieved only under the pressure of litigation does not negate a justified lack of confidence in future compliance.
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