IN RE: PENNAR PATERSON LIMITED Vs. STATE

JUDGEMENT

(1.) Whether the expression 'other legal proceedings' occurring in Section 446(1) of the Companies Act, 1956 ('the Act') does include the criminal proceedings is the question involved in these applications.

(2.) Application No. 179 of 2001 has been filed by the official liquidator to direct the first respondent herein to transfer Criminal Complaint No. 1026 of 2000 on the file of the Judicial Magistrate of First Class, Nagpur to this Court and to order costs of this application to come out of the assets of the company. Application No. 188 of 2001 has been filed to stay the proceedings in the said criminal complaint.

(3.) This Court by an order dated 24-11-1999 appointed the official liquidator attached to this Court as the provisional liquidator of Pennar Paterson Ltd. The Liquidator pursuant to the said order took over the assets of the company. It was found that a criminal complaint against the aforementioned company and its Director has been filed knowing that a provisional liquidator has been appointed in relation to the said company and without bringing on record the official liquidator.