Winding up court leave required before eviction and damages proceedings can continue against a company in liquidation.

Proceedings for eviction and recovery of damages under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 were treated as matters that, in substance, fall within ordinary civil court jurisdiction and remain subject to the winding up court's control when brought against a company in liquidation. Section 446(1) of the Companies Act, 1956 was construed broadly to protect the company's assets and prevent unsecured creditors from proceeding outside the liquidation process. Accordingly, leave of the winding up court is required before initiating or continuing Estate Officer proceedings against the company, while the question of whether leave should be granted and on what terms was left to the company judge.

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Issues: Whether leave of the winding up court under section 446(1) of the Companies Act, 1956 is required before initiating or continuing proceedings under sections 4 and 7 of the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 against a company in liquidation.

Analysis: The proceedings under the Public Premises Act, though taken before a special statutory forum, were held to be in substance proceedings for eviction and recovery of damages that would ordinarily fall within civil court jurisdiction and could appropriately be dealt with by the winding up court. Section 446 was construed broadly to protect the assets of the company in liquidation and to prevent unsecured creditors from obtaining an advantage outside the winding up process. The Public Premises Act was treated as creating a special forum, not as displacing the winding up court's control over proceedings against a company under liquidation. Authorities dealing with genuinely special statutory proceedings, such as assessment under tax law, were distinguished.

Conclusion: Leave of the winding up court is before the LIC can initiate or continue proceedings before the Estate Officer under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971.

Final Conclusion: The reference was answered against the LIC, and the question of whether leave should actually be granted and on what terms was left to be decided by the company judge dealing with the pending leave application.

Ratio Decidendi: Where proceedings against a company in liquidation are, in substance, of a kind normally determinable by ordinary courts and relate to recovery of possession or damages, leave of the winding up court is required even if the proceedings are brought before a special statutory forum.

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