Provisional liquidator custody under section 456 does not extend to leased property owned by a third party.

Section 456 of the Companies Act, 1956 vests a provisional liquidator with custody only of property, effects and actionable claims to which the company is entitled. A boiler held under a lease remained the respondent's property because title had not passed, and mere possession or use by the company did not convert it into company assets for winding-up purposes. The boiler therefore fell outside the scope of section 456 and could not be taken into the provisional liquidator's custody. The appeal was dismissed.

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Issues: Whether a boiler owned by the respondent under a lease arrangement could be treated as property of the company so as to fall within the custody of the provisional liquidator under section 456 of the Companies Act, 1956.

Analysis: Section 456 applies to property, effects and actionable claims to which the company is or appears to be entitled, and the custody of such property vests in the provisional liquidator upon the relevant winding-up order or appointment. On the facts, the boiler was the subject of a lease agreement, the lease money had not been paid, and title remained with the respondent. Property owned by the respondent could not be characterised as property to which the company was entitled merely because it was in the company's possession or use.

Conclusion: The boiler did not fall within section 456 and could not be taken into the custody of the provisional liquidator. The appeal failed and stood dismissed.

Ratio Decidendi: The provisional liquidator's custody under section 456 extends only to property to which the company is entitled, and assets owned by a third party under a lease do not become company property for winding-up purposes.

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