Government consent for winding-up is required for any pending or continued winding-up proceedings after takeover.
Interpretation holds that the statutory phrase barring "proceeding for the winding-up" must be given its ordinary, comprehensive meaning to cover any action connected with winding-up from institution through continuance to final disposal; the singular "proceeding" includes the series of steps comprising a winding-up action. By comparative construction, the bar applies to both commencement and continuance of winding-up proceedings after the government takeover and operates retrospectively from the takeover date. Operative effect: any winding-up petition pending or filed after the takeover requires Central Government consent and a petition without such consent is not maintainable.
Issues: Whether a winding-up proceeding of a company can be maintained in a court after the Central Government has taken over the management and running of the company under section 18E of the Industries (Development and Regulation) Act, 1951, without the consent of the Central Government.
Analysis: The statutory phrase "no proceeding for the winding-up of such undertaking" in section 18E(1)(c) must be given its ordinary and comprehensive meaning and covers any proceeding connected with the winding-up of the company, commencing with the filing of a winding-up petition and extending through its continuance to final disposal. Comparative interpretation of comparable statutory language concerning the requirement of consent in pending actions supports that the bar applies not only to institution but also to continuance of proceedings after the government takeover. The singular use of "proceeding" in the provision does not limit the word to a single discrete procedural step and should be read to include the series of proceedings comprised in a winding-up action. The provision operates retrospectively from the date the government order under section 18E is made, thereby requiring consent of the Central Government for any onward maintenance of winding-up proceedings commenced or pending after that date.
Conclusion: The winding-up petition is not maintainable without the consent of the Central Government and is dismissed for want of such consent.
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