MANEKLAL MANSUKHBAI Vs. SARASPUR MANUFACTURING COMPANY LTD

JUDGEMENT

(1.) The question we have to decide is whether leave ought to be given to the appellant to continue against the respondent-company a suit No. 672 of 1924 filed by him in the Court of the First Class Subordinate Judge at Ahmedabad against the respondent-company and two other defendants who were in fact the agents of the respondent-company. That leave is required because the company is in liquidation and the suit in question was brought after the winding-up petition although before the winding-up order. Accordingly, Section 171 of the Indian Companies Act, 1913, provides:- When a winding-up order has been wade, no suit or other legal proceeding shall be proceeded with or commenced against the Company except by leave of the Court, and subject to such terms as the Court may impose.

(2.) Of course as we all know, the winding-up order relates back to the date of the presentation of the winding-up petition.

(3.) The plaint itself asked for a declaration (a) that a sum of Rs. 7,63,429 was due by all the defendants to the plaintiff and for payment of that sum jointly and severally; (b) that the defendant-company might be ordered to execute a first legal mortgage of all their moveable and immoveable properties to secure repayment to the plaintiff of the said amount; (c) that the other defendants might be ordered to execute a proper document by way of assignment in favour of the plaintiff for the repayment of the same moneys of certain commission and other moneys payable by the defendant-company to the agency firm; (d) and (e) for a Receiver and an injunction; (f) for accounts and inquiries and orders for sale of the said properties as to the Court may appear just; and (g) for further and other relief.