Leave to continue suit against a company in liquidation may be granted, while receiver relief fails where property is already under receivership.

Leave may be granted to continue a pending suit against a company in liquidation where the Official Liquidator raises no objection, and the continuation of proceedings is sought under the provision governing suits against such companies. Where the property is already in the hands of a receiver, the statutory restriction relating to appointment of a receiver over assets in the liquidator's hands does not apply, so relief can be confined to steps necessary in relation to the suit properties under the execution-related provision. Appointment of a receiver was declined on that basis, while leave to proceed with the suit and to act in relation to the properties was allowed, subject to the rights of secured creditors and workmen.

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Issues: (i) whether leave could be granted to continue the pending suit against the company in liquidation; (ii) whether leave could be granted for appointment or continuation of a receiver and for sale of the suit properties.

Issue (i): whether leave could be granted to continue the pending suit against the company in liquidation.

Analysis: No objection was raised by the Official Liquidator to continuation of the suit, and the application sought leave under the provision governing institution or continuation of proceedings against a company in liquidation.

Conclusion: Leave to continue the suit was granted in favour of the applicants.

Issue (ii): whether leave could be granted for appointment or continuation of a receiver and for sale of the suit properties.

Analysis: The property was already in the hands of a receiver, so the provision dealing with appointment of a receiver of assets in the hands of the liquidator did not apply. Leave was therefore allowed only to the extent necessary under the provision relating to execution or other proceedings against company property, and not for appointment of a receiver.

Conclusion: Relief for appointment of a receiver was declined, while leave under the relevant provision for taking steps in relation to the suit properties was granted.

Final Conclusion: The application was allowed in part, with continuation of the suit permitted and the prayer concerning a receiver rejected to the extent it depended on the inapplicable provision, subject to the rights of secured creditors and workmen.

Ratio Decidendi: Where assets are already in the hands of a receiver, the statutory restriction on appointment of a receiver of assets in the hands of the liquidator is inapplicable, while leave to continue proceedings against the company in liquidation may still be granted.

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