Company in liquidation goods at port may be sold by port authorities under court supervision, with proceeds remitted to the liquidator.

On a winding-up order, a company's property is treated as being in the custody of the court under the Companies Act, and disputes concerning that property fall within the company court's jurisdiction. However, port authorities retain statutory power to sell goods in their custody after notice under the Major Port Trusts Act. Where imported goods of the company in liquidation were lying at the port, the appropriate course was to permit sale by the port authorities with the official liquidator present and overseeing the process, so that proper publicity and a fair price were secured and the sale remained subject to court confirmation. The sale proceeds were to be remitted to the liquidator, who could discharge the customs claim.

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Issues: Whether, after a winding-up order, imported goods belonging to the company in liquidation lying at the port could be dealt with only under the company court's control, and whether the port authorities could be permitted to sell the goods in the presence of the official liquidator with the sale proceeds remitted to him.

Analysis: On a winding-up order, the company's property is deemed to be in the custody of the court under section 456 of the Companies Act, 1956, and matters concerning the property and claims against it fall within the company court's jurisdiction under section 446 of that Act. At the same time, the port authorities retained statutory power under sections 61 and 63 of the Major Port Trusts Act, 1963, to sell goods in their custody after notice to the owner. As the goods belonged to the company in liquidation, and the customs claim could be satisfied from the liquidator's available funds, the appropriate course was to permit the port authorities to conduct the sale with the liquidator's presence and oversight, ensuring proper publicity and a fair price, while keeping the process subject to the court's confirmation.

Conclusion: The application was allowed and the port authorities were directed to sell the goods in the presence of the official liquidator, remit the sale proceeds to him, and the liquidator was authorised to discharge the customs claim.

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