Winding-up custody of company assets permits eviction of post-order occupants and restoration of possession on recall.

When a company is ordered to be wound up, its assets remain under the custody of the Company Court, and any occupation or arrangement created after commencement of winding-up proceedings without the Court's permission has no legal recognition. Occupants who entered the company's premises during the winding-up proceedings could not resist restoration of possession merely because the winding-up order was later recalled. The Court therefore held that the Company Court could direct eviction of such post-winding-up occupants and restore possession of the company's assets to the company.

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Issues: Whether, after a winding-up order is recalled, the Company Court can evict occupants who entered into possession of the company's property after commencement of the winding-up proceedings and restore possession to the company.

Analysis: Once a company is ordered to be wound up, its assets come within the custody of the Company Court under the Companies Act, 1956. Any arrangement or occupation created after the winding-up order, without the permission of the Company Court, cannot be recognized in respect of the company's assets. The Court held that occupants who came into the premises during the winding-up proceedings had no legal basis to resist restoration of possession when the winding-up order was later set aside. The Court also distinguished the claim of post-winding-up occupants from the position of those whose separate challenge had already been dealt with, and found no legal impediment to directing eviction in order to restore the company's assets.

Conclusion: The issue was decided in favour of the appellant company; the Company Court could direct eviction of post-winding-up occupants and restore possession of the assets to the company after recall of the winding-up order.

Final Conclusion: The appeals succeeded, the impugned order was set aside, and the respondents-occupants were held liable to be evicted with restoration of possession to the appellant company.

Ratio Decidendi: Property of a company placed in winding up remains under the custody of the Company Court, and any post-winding-up occupation or arrangement created without the Court's permission is not entitled to recognition and may be displaced upon recall of the winding-up order.

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