7 Most Important Differences between Petition under Section 397 & 398 and Petition under Section 433 are listed below:
Petition under Section 397 & 398:
1. It is a preventive remedy by this remedy, the company does not die. It continues.
ADVERTISEMENTS:
2. Application under Sections 397 and 398 shall be made to the Tribunal, which is a statutory body, established especially for the supervision of companies.
3. Section 400 imposes that notice shall be served to the Central Government on each application.
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4. Every shareholder cannot make an application. He shall be eligible to make an application, unless he has certain share qualifications mentioned in Sec. 399.
5. The Central Government can invoke the jurisdiction of the Tribunal under Section 401
ADVERTISEMENTS:
6. The nature of relief is preventive and just like a surgery and treatment.
7. It is wider than the relief under Sec. 433.
Petition under Section 433:
1. It is a drastic remedy. By this remedy, the company dies.
2. Application for winding up shall be made to / the Court.
ADVERTISEMENTS:
3. Such notice is not necessary.
4. No such restriction is imposed. Any shareholder can bring an application for winding up.
5. The Central Government cannot apply for winding up of a company. But the Registrar of the Companies can apply under Sec. 439 (5)
6. The nature of relief is drastic, and just like a post mortem
7. It is very narrower