https://www.taxtmi.com/caselaws?id=314368 Sections 171 and 232 of the Companies Act require court leave for proceedings against a company in liquidation and render any attachment, distress or execution effected without such leave void; accordingly, leave obtained merely to continue an underlying suit does not authorise subsequent execution or sale and fresh leave must be obtained at the execution stage. The provisions aim to ensure single-agency asset distribution and protect pari passu treatment of creditors. A secured creditor who realises security outside the winding-up process may be unaffected, but once legal proceedings for realisation are initiated the statutory leave requirement applies. en-us Thu, 05 Mar 1959 00:00:00 +0530 Sat, 10 Aug 2024 13:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=314368 Sections 171 and 232 of the Companies Act require court leave for proceedings against a company in liquidation and render any attachment, distress or execution effected without such leave void; accordingly, leave obtained merely to continue an underlying suit does not authorise subsequent execution or sale and fresh leave must be obtained at the execution stage. The provisions aim to ensure single-agency asset distribution and protect pari passu treatment of creditors. A secured creditor who realises security outside the winding-up process may be unaffected, but once legal proceedings for realisation are initiated the statutory leave requirement applies. Case-Laws Companies Law Thu, 05 Mar 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=314368