Tenancy rights in liquidation remain subject to rent control restraints; Official Liquidator cannot sell them without landlord consent.

A company's tenancy rights in liquidation do not vest in the Court or the Official Liquidator, who acts only as administrator and agent of the company until dissolution. Although a sale by the Liquidator with court sanction is not a sale by operation of law, the tenancy remains subject to the Delhi Rent Control Act, which restricts transfer, assignment, or relinquishment without the landlord's written consent and penalises unauthorised dealings. In the absence of such consent, the tenancy rights are not freely saleable, and the Liquidator cannot authorise their sale contrary to those statutory restraints. The application seeking permission to sell was therefore not maintainable.

---

---

Issues: Whether the Official Liquidator could, without the landlord's consent, sell the company's tenancy rights and receive consideration therefor in view of the Companies Act, 1956 and the Delhi Rent Control Act, 1958.

Analysis: The tenancy rights of a company in liquidation do not vest in the Court or in the Liquidator; the company retains its corporate existence until dissolution, and the Liquidator acts as its administrator and agent. A sale by the Liquidator with the Court's sanction is not a sale by operation of law or a sale by the Court. The Delhi Rent Control Act, 1958, however, contains prohibitions against transfer, assignment or relinquishment of tenancy rights without the landlord's written consent and penal consequences for unlawful charges or transfers. In the absence of such consent, the tenancy remains subject to the statutory restraints and is not freely saleable.

Conclusion: The Official Liquidator had no authority to sell the tenancy rights in contravention of the statutory restrictions, and the application for permission to sell was not maintainable.

---