Preventive jurisdiction under Section 145 CrPC can proceed during winding up without prior Company Court leave.

Section 145 CrPC confers a mandatory preventive jurisdiction on the Magistrate to act where a dispute is likely to cause a breach of peace and to determine actual possession. In the context of winding up, the bar in Section 171 of the Indian Companies Act was treated as aimed at protecting company assets from unnecessary litigation, but not as overriding that express jurisdiction. The magisterial proceedings were also not treated as proceedings against the company in the relevant sense, particularly where the liquidator had effectively invited police and judicial intervention. The objection based on Section 171 therefore failed, and prior leave of the Company Court was held unnecessary.

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Issues: Whether proceedings under Section 145 of the Criminal Procedure Code could be initiated and continued without prior leave of the Company Court during winding up, notwithstanding the prohibition in Section 171 of the Indian Companies Act.

Analysis: Section 145 of the Criminal Procedure Code imposes a mandatory duty on the Magistrate to act where a dispute likely to cause a breach of peace exists and to determine actual possession. The prohibition in Section 171 of the Indian Companies Act is intended to protect company assets from wasteful litigation, but it was not treated as overriding the express preventive jurisdiction conferred by Section 145. The proceedings were also not regarded as proceedings against the company in the relevant sense, since the liquidator had himself effectively invited police intervention and the magisterial proceedings. If the liquidator lacked authority to take such steps, the appropriate course was to seek leave or directions from the Company Court.

Conclusion: The objection based on Section 171 of the Indian Companies Act failed, and leave of the Company Court was not required for the Section 145 proceedings.

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