Statutory bar on winding-up proceedings applies to pending petitions as well as future ones absent Central Government consent

A statutory bar on winding-up proceedings applies while the management of a textile undertaking remains vested in the Central Government, unless its consent is obtained. The phrase "shall lie" was read to cover both fresh and already pending proceedings, because a pre-existing petition can still be kept alive and sustained. Accordingly, filing the winding-up petition before the Act commenced did not avoid the prohibition, and the petition was not maintainable without Central Government consent.

---

---

Issues: Whether a winding-up petition filed before the Textile Undertakings (Taking Over of Management) Act, 1983 came into force could continue without the consent of the Central Government while the management of the textile undertaking remained vested in the Central Government.

Analysis: Section 8(1)(c) prohibits any proceeding for winding up of the textile company or for appointment of a liquidator or receiver while the management remains vested in the Central Government, except with its consent. The phrase "shall lie" was construed to cover not only newly instituted proceedings but also proceedings already initiated and pending, since such proceedings are capable of being kept alive and sustained. The fact that the petition had been filed before the Act came into force did not take it outside the statutory prohibition.

Conclusion: The winding-up petition was hit by the statutory bar and was not maintainable without the consent of the Central Government.

Ratio Decidendi: Where a statute bars proceedings for winding up while management of a textile undertaking remains vested in the Central Government, the bar applies to pending as well as future winding-up proceedings unless consent is obtained.

---