STATE Vs. TOPNO P ITO

JUDGEMENT

(1.) BY an order of this Court dated 28th Jan., 1958, a notice was issued on 31st Jan., 1958, to Shri P. Topno, ITO, Titlagarh, to show cause, why he should not be committed for contempt of Court for having started a legal proceeding against the official liquidator in a pending winding up case under the Companies Act after the order for winding up was passed, without the leave of the Court.

(2.) BY an order passed on 30th Aug., 1957, the Koraput Swadhin Motor Transport Company Ltd. was ordered to be wound up by this Court and the official liquidator was directed to proceed with the administration of the estate in accordance with the provisions of the Indian Companies Act, 1956. From that date, under S. 456 of the Companies Act, all the property and effects of the company should be deemed to be in the custody of the Court. Under S. 446 of the said Act, when a winding up order has been made, no suit or other legal proceeding shall be commenced against the company except by leave of the Court and subject to such terms as the Court may impose. The opposite party, the ITO, Titlagarh, without obtaining the leave of the Court before starting proceedings for attachment of the assets in the custody of the Court in the hands of the official liquidator issued a notice under S. 46, cl. (5A), on the official liquidator under the following circumstances.

(3.) THIS clearly shows that the ITO, by issuing the above notice, started a legal proceeding against the official liquidator when he was asked to supply the information required, without the consent of the Court as required by law. Under S. 446, cl. (1), of the Indian Companies Act, 1956,