RAJINDER STEELS LTD Vs. OFFICIAL LIQUIDATOR HIGH COURT

JUDGEMENT

(1.) This is an application under Section 446 of the Companies Act for granting leave to the applicant to pursue the proceedings under Section 138 of the Negotiable Instruments Act, pending in the court of the Chief Additional Metropolitan Magistrate, 40th court at Girgaum, Bombay, against the company liquidator and the directors being complaint No. 2221/S of 1999 for dishonour of cheques given by the accused to the applicant-company towards the lease rentals of air pollution control equipment.

(2.) No one appears for the applicant.

(3.) Sri R. P. Agarwal, learned Counsel for the official liquidator informs that there is a conflict of opinions in the High Courts whether such leave is required in respect of criminal proceedings. The relevant words under Section 446 are that "any suit or other legal proceedings". It is stated that the term "legal proceedings" shall also include criminal proceedings. Although the company court does not have jurisdiction to take cognizance of criminal case, it must be informed, if the winding up order has been made or the official liquidator has been appointed, about the proceedings pending against the company.