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Issues:
1. Whether the suit filed by the State Bank of India against the company can proceed without obtaining leave of the company court as per Sections 444 and 446(1) of the Companies Act. 2. Whether the secured creditor in a winding-up process needs to obtain leave from the court to enforce their rights. 3. Whether a composite suit involving the company and guarantors can proceed against the guarantors without determining the company's liability. Analysis: 1. The petition involved a dispute regarding the maintainability of a suit filed by the State Bank of India against a company without obtaining leave from the company court as required by Sections 444 and 446(1) of the Companies Act. The trial court had allowed the suit to proceed despite the objection raised. The petitioner relied on legal precedents emphasizing the necessity of obtaining leave from the court for such proceedings involving a company under winding-up. 2. The judgment discussed the position of a secured creditor in a winding-up scenario, citing relevant legal interpretations from previous cases. It highlighted that a secured creditor, such as a mortgagee, can enforce their rights outside the winding-up process without requiring leave from the court. However, if the creditor chooses to act as an unsecured creditor, they must obtain leave before initiating legal proceedings, ensuring protection of the company's assets during winding-up. 3. The judgment addressed the argument raised by the respondent's counsel regarding a composite suit involving both the company and guarantors. It emphasized that determining the company's liability is crucial before holding guarantors accountable. Therefore, in a situation where a composite suit is filed and leave of the Company Court is necessary to proceed against the company, the judgment concluded that the suit cannot continue against the guarantors without obtaining the required leave. In conclusion, the petition was allowed, granting the State Bank of India the opportunity to seek leave to proceed with the suit. The judgment suggested that the bank should also request direction from the Company Court for the continuation of the litigation at the relevant court in Gwalior once leave is granted. No costs were awarded in this decision.
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