9911796707
TMI Blog1942 (10) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... ion in these two appeals is whether the decree-holder should obtain the sanction of the Court which passed orders winding up the Calicut Bank (appellant) under Section 171 of the Indian Companies Act, for the purpose of continuing execution proceedings taken out against that Bank which is now under liquidation. Both these appeals arise out of execution proceedings started by the decree-holders, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and that consequently it was not necessary that the sanction of the Court should be obtained; and it relied upon the decision of this Court in Narayanachari v. Annamalai Chettiar [1939] 2 MLJ 225 . The appellate Court followed the same decision and dismissed the appeals. It however stated that, under Section 80, Civil Procedure Code, it was not necessary that a notice should be sent to a pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. It cannot therefore be said that the Bank is not a defendant against whom a relief was granted under the decree. The Bank was hence not a mere pro forma defendant. It is urged for the respondents that the proceedings referred to in Section 171 of the Companies Act refers to an original proceeding like a suit started by the filing of a document similar to a plaint and not to execution and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I will be justified in accepting that inter-pretation of the word "proceeding." In Govindaswami v. Rasu [1934] 58 Mad. 781 , Venkatasubba Rao, J., after referring to the meaning of the word "proceeding" as given by Stroud and in Black's Law Dictionary, points out that the word need not necessarily relate to an independent originating proceedings, but may also relate to supplemental proceedin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not necessary to obtain the sanction of the Court under Section 171 to continue the execution proceedings taken against the Company after a winding up order has been made and a provisional liquidator has been appointed. In the result, both the appeals are allowed, and the petitions are remanded to the Court of First Instance to enable the parties to get the necessary sanction to continue the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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