V K PADMANABHAN Vs. KUNJAN NARAYANAN
HIGH COURT OF KERALA
Click here to view full judgement.
(1.)THIS petition by the Official Liquidator of a Company is to revise an order dismissing his application to proceed with a suit ignoring its dismissal by the court of institution after the order for the winding up of the Company has been passed.
(2.)O. S. No. 370 of 1955 on the file of the Munsif, Vaikom, is a suit for money instituted by the Company on the 30th June 1955. On the 5th November 1956, the Company was wound up by an order of the District Court, Alleppey; on the 5th december 1956 when the suit was called, the managing director submitted that fact before the Court and" thereupon the Court adjourned the case to the 31st january 1957, for the liquidator to get impleaded. As nothing was done, the suit was dismissed on the 30th January 1957. Nothing happened till the ,25th June 1958 when the liquidator submitted an application in the liquidation court stating that the dismissal of the suit by the Munsif, Vaikom. after the passing of the winding-up order, was without jurisdiction as being contrary to the stay enacted in section 446 of the Companies Act, 1956, and therefore, ignoring the same, the suit should be taken to file and proceeded with. That application was dismissed by the District Judge on the 12th January 1960. This petition is for a revision of that order.
(3.)SECTION 446 of the Companies Act, 1956, treads:
" (1) When a winding up order has been made or the Official Liquidator has been appointed as provisional liquidator, no suit or other legal proceeding shall be commenced, or if pending at the date of the winding up order, shall be proceeded with, against the company, except by leave of the Court and subject to such terms as the Court may impose. (2) The Court which is winding up the company shall, notwithstanding anything contained in any other law for the time being in force, have jurisdiction to entertain, or dispose of- (a) any suit or proceeding by or against the company; (b ). . . . . (c ). . . . . (d ). . . . . Whether such suit or proceeding has been instituted or is instituted. . . . . before or after the order for the winding up of the company, of before or after the commencement of the Companies (Amendment)Act, 1960.
3. Any suit or proceeding by or against the company which is pending in any Court other than that in which the winding up of the company is proceeding may, notwithstanding anything contained in any other law for the time being in force, be transferred to and disposed of by that court.
Copyright © Regent Computronics Pvt.Ltd.