Leave to continue DRT recovery proceedings during liquidation may be granted where no prejudice to the estate is shown.

Where a bank's recovery claim was already pending before the Debts Recovery Tribunal when the company entered liquidation, leave under section 446 could be granted to continue the proceedings because no sufficient prejudice to the liquidation estate was shown. The Official Liquidator was allowed to contest the claim, and the company's estate was protected by conditions on expenses and prior permission before execution. The text states that, in these circumstances, the pending recovery action may proceed notwithstanding winding-up, subject to safeguards for the liquidation process.

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Issues: Whether leave should be granted under section 446 of the Companies Act, 1956 to continue proceedings before the Debts Recovery Tribunal for recovery of the bank's claim against a company under winding up.

Analysis: The claim was already pending before the Debts Recovery Tribunal when the winding-up order was made. The Official Liquidator did not dispute the grant of permission, but sought liberty to contest the claim and protection of the company's estate. In these circumstances, and considering that the liquidation process was likely to take time, there was no sufficient ground to refuse leave to proceed with the recovery proceedings.

Conclusion: Leave to continue the proceedings before the Debts Recovery Tribunal was granted, with liberty to the Official Liquidator to contest the claim and subject to conditions regarding expenses and prior permission before execution.

Final Conclusion: The bank was permitted to pursue its recovery claim notwithstanding the winding-up proceedings, while preserving the Liquidator's right to contest and safeguarding the company's estate.

Ratio Decidendi: Where a recovery claim is already pending before the Debts Recovery Tribunal and the company is under liquidation, leave under section 446 may be granted if no prejudice is shown, subject to safeguards protecting the liquidation estate.

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