- (1.)A preliminary objection is raised in this appeal on behalf of the respondent that since a winding-up order has been made with respect to the appellant-Company, since the filing of the present appeal in a winding-up proceeding for compulsory winding-up, it cannot be continued without the leave of the winding-up Court by reason of provisions of Section 171 of the Indian Companies Act, 1913, which applies to the present case.
(2.)THE facts leading up to the present appeal, necessary for consideration of this objection may be briefly stated:
(3.)RESPONDENT filed the suit out of which this appeal arises against the appellant company and its Managing Director Thakur Ranjeetsingh for the recovery of Rs. 15,469-8-3 on the basis of a loan agreement in respect of a sum of Rs. 26,000/on terms and conditions mentioned therein. The agreement, it was alleged, was executed by Thakur Ranjeetsingh as the Managing Director of the Company. Thakur Ranjeetsingh had personally guaranteed the repayment of this loan as per terms of the agreement. After giving credit for the amounts received towards this plaintiff filed the suit for the balance with interest. The defendant-company and Thakur Ranjeetsingh both contested the suit denying borrowing of Rs. 26,000/-; pleading want of consideration for the agreement sued upon and repayment of Rs. 12,000/- more. The defence was overruled: and the suit was decreed. This appeal is directed against that decree. The Company as well as Thakur Ranjeetsingh preferred appeal on 29-9-1953. While the appeal was pending winding-up order was passed.