1974 (3) TMI 79

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....Md. Vakiluddin and S.K. Prasad for the Respondent. JUDGMENT Untwalia, CJ. - These are three applications in revision by the State of Bihar, which owed certain money to the United Provinces Commercial Corporation, a private limited company incorporated under the Indian Companies Act. The plaintiff opposite parties in all the three civil revision applications filed three money suits against th....

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.... the compromise decrees; an official liquidator had been appointed. The court below was asked to stay its hands because of the provision of law contained in section 446 of the Companies Act, 1956. The learned Additional Subordinate Judge has refused to do so. The State has come up in revision. It is no doubt true that after the defendant-company went into liquidation the suits could proceed wit....

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....e provisions in the Companies Act and the Rules thereunder contemplate that if the suit is pending on the date of the presentation of the winding-up petition or on the date of the winding-up order the suit or proceeding is not to be continued except by leave of the court. Leave to proceed with the suit in such circumstances is not similar to leave under clause 12 of the Letters Patent. In the abse....

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.... my opinion the absence of leave is not fatal as to render the decree a nullity. In appropriate cases leave can be given even retrospectively if circumstances of the case justify". It is also to be pointed out that a company does not lose its corporate character and legal entity merely because it has gone into liquidation under orders of a court or a voluntary one. The corporate status and lega....