1951 (4) TMI 14

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..... t the learned Judge should have embarked on considerations which, in our opinion, are not germane to the disposal of the application made by the Official Liquidator under section 179 (1) of the Indian Companies Act for leave to file a suit. We agree with the learned Judge that the said provision in the Indian Companies Act was intended to prevent frivolous and wasteful litigation by an Official Li .....

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..... n to institute the suit. While we agree with him that leave of the court under section 179 is not a mere formality, we cannot see anything improper in the Official Liquidator, if he bona fide believed that there was a fair claim which he could put forward on behalf of the company, making every preparation for the institution of the suit. We do not see why the Official Liquidator should first app .....

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..... icial Liquidator to institute the suit. We have no hesitation in holding that sanction should be accorded to the Official Liquidator to institute the proposed suit. We do not understand what the learned Judge meant when he said that he would not allow the suit to be filed solely on the basis of section 55 of the Transfer of Property Act. That section, among other things, declares that in the abs .....

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