https://www.taxtmi.com/caselaws?id=100214 Section 391(6) of the Companies Act, 1956 does not confer an unlimited power to stay all proceedings against a company. The expression "proceeding" does not extend to statutory assessment or penalty proceedings before the sales tax under the Delhi Sales Tax Act, 1975, because that Act is a complete code governing assessment, penalty and interest and the company court cannot restrain the statutory authority from discharging its functions. By contrast, once recovery proceedings are initiated against the company's assets, a stay may be granted because such recovery affects the company's estate and the interests of unsecured creditors. en-us Thu, 06 May 1982 00:00:00 +0530 Tue, 31 Jan 2012 16:02:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100214 Section 391(6) of the Companies Act, 1956 does not confer an unlimited power to stay all proceedings against a company. The expression "proceeding" does not extend to statutory assessment or penalty proceedings before the sales tax under the Delhi Sales Tax Act, 1975, because that Act is a complete code governing assessment, penalty and interest and the company court cannot restrain the statutory authority from discharging its functions. By contrast, once recovery proceedings are initiated against the company's assets, a stay may be granted because such recovery affects the company's estate and the interests of unsecured creditors. Case-Laws Companies Law Thu, 06 May 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100214