https://www.taxtmi.com/caselaws?id=28416 Section 391(6) of the Companies Act, 1956 permits a company court to stay suits or proceedings against a company to protect its assets while a compromise or arrangement is pending, but that power does not extend to assessment or penalty proceedings under the Delhi Sales Tax Act, 1975. Such proceedings lie within the exclusive statutory jurisdiction of the sales tax authorities and cannot be restrained by the company court, since they determine liability under the taxing statute. Recovery proceedings, which may directly affect company assets, stand on a different footing and may be stayed in appropriate cases. en-us Thu, 06 May 1982 00:00:00 +0530 Mon, 22 Feb 2010 13:06:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28416 Section 391(6) of the Companies Act, 1956 permits a company court to stay suits or proceedings against a company to protect its assets while a compromise or arrangement is pending, but that power does not extend to assessment or penalty proceedings under the Delhi Sales Tax Act, 1975. Such proceedings lie within the exclusive statutory jurisdiction of the sales tax authorities and cannot be restrained by the company court, since they determine liability under the taxing statute. Recovery proceedings, which may directly affect company assets, stand on a different footing and may be stayed in appropriate cases. Case-Laws Income Tax Thu, 06 May 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28416