TaxTMI 
TaxTMI 
2008 (3) TMI 470
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....the general public about the sale of assets and property of the company in liquidation by way of court auction to be conducted by the company court on April 20, 2006. (iii) The bids/tenders were invited from the general public under the sealed cover along with earnest money. The immovable property of the company was shown as leasehold property. The property was sought to be sold in different lots as notified. (iv) The applicant submitted its bid for lot No. 20 which, inter alia, included the land measuring 10814.45 sq. yards situate at A-15, Phase-VI, Mohali. The applicant also deposited a sum of Rs. 36 lakhs as earnest money vide demand draft dated April 16, 2006. (v) The auction was held on April 20, 2006 and the applicant was declared as the successful bidder with highest bid of Rs. 6.90 crores which was approved by the company court. The balance amount of Rs. 5.54 crores was deposited by the applicant vide demand draft No. 420170 dated April 24, 2006, drawn on Punjab National Bank, Mohali, on April 24, 2006, with the official liquidator. The applicant requested the official liquidator, respondent No. 2, to hand over the possession of the property vide its letter dated April ....
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....or the sake of convenience, section 446 of the Companies Act is reproduced as under : "446. Suits stayed on winding up order,-(1) When a winding up order has been made or the official liquidator has been appointed as provisional liquidator, no suit or other legal proceedings shall be commenced, or if pending at the date of the winding up order, shall be proceeded with, against the company, except by leave of the Tribunal and subject to such terms as the Tribunal may impose. (2) The Tribunal shall notwithstanding anything contained in any other law for the time being in force, have jurisdiction to entertain, or dispose of- (a)any suit or proceeding by or against the company ; (b)any claim made by or against the company (including claims by or against any of its branches in India); (c)any application made under section 391 by or in respect of the company; (d)any question of priorities or any other question whatsoever, whether of law or fact, which may relate to or arise in the course of the winding up of the company ; whether such suit or proceedings has been instituted, or is instituted, or such claim or question has arisen or arises or such application has been made or is ma....
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....b-section (3) and any evidence that he may produce in respect of the same and after giving him a reasonable opportunity of being heard in the matter, the Estate Officer may, for reasons to be recorded, in writing, make an order resuming the land or building or both, as the case may be, and direct the forfeiture as provided in sub-section (3) of the whole or any part of the money paid in respect of such transfer. (5) Any person aggrieved by an order of the Estate Officer under section 44 or under this section may, within a period of thirty days of the date of the communication to him of such order, prefer an appeal to the Chief Administrator in such form and manner, as may be prescribed : Provided that the Chief Administrator may entertain the appeal after the expiry of the said period of thirty days, if he is satisfied that the appellant was prevented by sufficient cause from filing the appeal in time. (6) The Chief Administrator may, after hearing the appeal, confirm, vary or reverse the order appealed from and may pass such order as he thinks fit. (7) The Chief Administrator may either on his own motion or on an application received in this behalf at any time within a period ....
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....as been observed as follows (page 126): "17. In my considered view, the aforesaid claim merits acceptance. Section 537 in unambiguous terms mandates that after the commencement of a winding up petition against a company, an order, inter alia, of the attachment of its properties or effects shall be void except when the same is with the leave of the court. In so far as the commencement of winding up proceedings is concerned, section 441 of the Companies Act does not leave any ambiguity in the matter. It has been expressly provided therein that winding up of a company by the court would be deemed to have commenced with effect from the date of presentation of a petition of winding up. It is not disputed that the winding up proceedings have commenced against the respondent-company prior to the passing of the order of attachment dated February 2, 2000. The order of attachment having been passed without leave of this court, it is liable to be considered as void in terms of the mandate of section 537. A void order is an order which does not exist in the eyes of law. In view of the fact that the order dated February 2, 2000, i.e., the order of attachment has been found to be an order which....
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.... is a State legislation. The Companies Act has been enacted by the Union Legislature by virtue of entry 43 in the list-I of Schedule-VII, Constitution of India whereas the PRTPD Act has been enacted by virtue of entry in the State List (List-II) of Schedule-VII to the Constitution. The Companies Act is deemed to be a special statute as it deals with almost all issues relating to the companies. The Companies Act being a Central Act, will have an overriding effect upon the provisions of all other State laws enacted by the State Legislature relating to any issue concerning companies. Assuming that the PRTPD Act is also a special statute and there is apparent conflict between the provisions of section 446 of the Companies Act and section 45 of the PRTPD Act, even then the law enacted by the Union Legislature shall have an overriding effect and to that extent the State law is deemed to be inoperative under the doctrine of eclipse. The powers of Parliament and the State Legislature are prescribed under article 246 of the Constitution of India. The Union Legislature has exclusive jurisdiction and competence to enact laws in respect to any of the entry specified under the Union (List-I) Sc....