ISSUE:
Whether the NCLT has the power to order for winding up of a company under Section 271 (c ) of the Companies Act, 2013 on the ground that the incorporation & operations was backed by fraud?
RULE:
A company incorporated to commit fraudulent activities or if its operations are fraudulent can be wound by the Tribunal by the powers granted to it under Section 271(c ) & Section 271(e).
The standard norms of justice and morality are constantly against fraud and therefore the intention behind any action initiated by the victim of a fraud can never be an obstruction.
Companies that commit fraudulent activities cannot hide behind arbitral awards or trivial legal provisions, since fraud takes priority over arbitral and contractual rights.