Voluntary liquidation does not bar execution; section 207 cannot empower the executing court to stay decree proceedings.

In voluntary liquidation, section 207 of the Indian Companies Act does not itself bar execution of a decree or confer power on an executing court to stay the proceedings. The provision requiring the company's assets to be applied pari passu is directed to the private liquidator, while restrictions on proceedings and execution apply to winding up by the court or under its supervision. If directions are needed, the proper course is to approach the court having jurisdiction under the Act. The executing court therefore had no jurisdiction to stop execution merely because the company was in voluntary liquidation.

---

---

Issues: Whether an executing court has jurisdiction to stay execution of a decree against a company in voluntary liquidation, and whether section 207 of the Indian Companies Act bars execution without an order from the court having jurisdiction under the Act.

Analysis: The provisions governing winding up by the Court and winding up under the supervision of the Court expressly restrict proceedings and executions, but no corresponding bar exists for voluntary liquidation. The requirement in section 207 that the assets of the company be applied pari passu is directed to the private liquidator and does not confer power on the executing court to stop execution. Orders under the Companies Act are to be made by the court having jurisdiction under the Act, and if direction is required the proper course is to approach that court under section 215.

Conclusion: The executing court had no power to stay the execution proceedings, and the order staying execution was without jurisdiction.

Final Conclusion: The decree-holder's execution could not be stayed by the subordinate court merely because the company was in voluntary liquidation, and the impugned order was set aside in favour of the decree-holder.

Ratio Decidendi: In voluntary liquidation, section 207 of the Indian Companies Act does not by itself bar execution or authorise the executing court to stay proceedings; only the court having jurisdiction under the Act may grant appropriate directions.

---