2003 (11) TMI 345 - HC - Companies Law

Summary

Issues: Permission to proceed with a writ petition against a corporation in liquidation under section 446 of the Companies Act, 1956.

Analysis:
The judgment delivered by the High Court of Rajasthan pertained to an application seeking permission to proceed with a writ petition against the Rajasthan State Agro Industries Corporation, which was ordered to be wound up by the Court. The applicant filed the writ petition and requested consequential monetary benefits from the corporation in liquidation if the petition was allowed. The application was made under section 446 of the Companies Act, 1956, seeking permission to prosecute the writ petition against the Rajasthan State Agro Industries Corporation (in liquidation).

The Court noted that the winding-up order of the corporation was stayed, and the Official Liquidator had not been appointed. The applicant's counsel referred to a previous order granting permission to another applicant in a similar matter to prosecute a writ petition against the same corporation. Despite the prima facie view that no leave was required due to the stay on the winding-up order, the Court granted permission to the applicant to proceed with the writ petition as requested. The judgment emphasized that although the winding-up order existed, it was stayed, and no Liquidator had been appointed, leading to the decision to grant permission for the applicant to prosecute the writ petition.

In conclusion, the High Court of Rajasthan allowed the application, permitting the applicant to prosecute the writ petition in the relevant court against the Rajasthan State Agro Industries Corporation. The judgment clarified the necessity of seeking permission due to the court's directive in the writ petition, despite the circumstances surrounding the corporation's liquidation status and the stay on the winding-up order.