Leave under section 446(1) may be granted after suit filing, validating continuation of proceedings against a company in liquidation.

Section 446(1) of the Companies Act, 1956 does not require prior leave as a condition precedent to instituting proceedings against a company in winding up. Leave may be granted after the suit has already been filed, and once granted, the proceeding is treated as instituted from the date of leave. On that basis, the applicant was permitted to continue the pending arbitration suit against the company in liquidation, with the court noting that the nature of the dispute and the presence of other parties supported continuation in the existing action.

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Issues: Whether leave under section 446(1) of the Companies Act, 1956 could be granted after institution of the suit to enable the applicant to proceed with the arbitration suit against the company in liquidation.

Analysis: Section 446(1) does not make prior leave a condition precedent to the institution of proceedings against a company in winding up. Leave may be granted even after the suit has been instituted, and once granted the proceeding is treated as instituted on the date leave is granted. The nature of the dispute and the presence of other parties made it that the claim against the company be pursued in the already instituted action.

Conclusion: Leave to proceed with the arbitration suit against the company was granted.

Final Conclusion: The applicant was permitted to continue the pending arbitration proceedings against the company in liquidation, and the matter was disposed of by allowing the request for leave.

Ratio Decidendi: Leave under section 446(1) of the Companies Act, 1956 can be granted after institution of proceedings against a company in winding up, and on such grant the proceeding is treated as instituted from the date of leave.

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