https://www.taxtmi.com/caselaws?id=99301 Section 446 of the Companies Act, 1956 protects a company in liquidation from unnecessary litigation and expense by requiring leave before a suit proceeds. Leave is ordinarily granted only where the dispute cannot be effectively resolved in the winding-up proceedings; here, the claim over goods supplied on a sale-or-return basis did not disclose a prima facie case that property in the goods remained with the claimant, so the company court could itself examine the matter and leave was refused. The provision was also treated as in pari materia with section 171 of the Indian Companies Act, 1913, the change in language not altering the substance of the legal position governing leave to sue. en-us Tue, 09 Jul 1974 00:00:00 +0530 Wed, 25 Jan 2012 18:17:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99301 Section 446 of the Companies Act, 1956 protects a company in liquidation from unnecessary litigation and expense by requiring leave before a suit proceeds. Leave is ordinarily granted only where the dispute cannot be effectively resolved in the winding-up proceedings; here, the claim over goods supplied on a sale-or-return basis did not disclose a prima facie case that property in the goods remained with the claimant, so the company court could itself examine the matter and leave was refused. The provision was also treated as in pari materia with section 171 of the Indian Companies Act, 1913, the change in language not altering the substance of the legal position governing leave to sue. Case-Laws Companies Law Tue, 09 Jul 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99301