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2009 (10) TMI 538 - HIGH COURT OF KARNATAKAOfficial liquidator powers - Held that:- Though the provisions of section 458 of the Act to which our attention is drawn by Sri Manjunath, learned counsel, does provide for a situation to confer on the official liquidator a discretion to exercise the powers under sub-section (1) of section 457, that provision is for institution of legal proceedings on behalf of the company even without the prior sanction or intervention of the court and that again is in the discretion, which the liquidator gets only on an order being passed by the court to this effect and not by the discretion, conferred directly on the official liquidator under the statute. While for the present, we proceed with the examination of the appeal on merits, it is very necessary that the official liquidator becomes aware of this legal position henceforth and evinces commensurate awareness whenever appeals are filed by the official liquidator and in respect of the orders passed by the learned company judge to indicate that the appeal is either necessary or desirable to protect the interest of the community of creditors and shareholders.
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