Leave to continue DRT execution after winding-up was granted, with sale confirmation kept under company court control.

Leave under section 446 of the Companies Act, 1956 was considered for a secured creditor-bank seeking to continue execution proceedings before the Debt Recovery Tribunal despite a winding-up order. The execution proceedings had already been transferred to the DRT, the winding-up proceedings were stayed by the Supreme Court, and no objection was raised by the official liquidator or any other party. In these circumstances, leave to proceed with execution was granted, while the company court retained control over confirmation of sale and the order remained subject to any further direction of the Supreme Court.

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Issues: Whether leave should be granted under section 446 of the Companies Act, 1956 to continue execution proceedings before the Debt Recovery Tribunal despite the winding-up order.

Analysis: The applicant-bank was a secured creditor with a decree already obtained and the execution matter had been transferred to the Debt Recovery Tribunal. The winding-up proceedings were stayed by the Supreme Court, and there was no opposition from the official liquidator or any other party. In these circumstances, leave to proceed with execution was found appropriate, while preserving the company court's control over confirmation of sale and keeping the order subject to any direction that may be passed by the Supreme Court.

Conclusion: Leave to continue the execution proceedings before the Debt Recovery Tribunal was granted in favour of the bank, subject to the company court's sanction for confirmation of sale and the Supreme Court's orders.

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