9911796707
TMI Blog1954 (11) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... lications Ltd., Messrs. C. Vasudevan and Raghavarama Sastri. In paragraph 2 of the affidavit of T.P. Satyanathan, it is stated that the rent for the said portion of the premises was agreed at the time of the tenancy at Rs. 200 per month and that subsequently the applicants learnt that according to the valuation of the building by the Corporation of Madras at Rs. 500, the said rent of Rs. 200 for the portion of the premises was too high. Therefore the applicants are stated to have filed Application No. 1675 of 1954 before the House Rent Controller, Madras, for fixing the fair rent. In the reply affidavit filed by the company it is stated that the voluntary liquidators agreed to rent the portion first at Rs. 150 per month and wanted two month ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of section 171 and of the analogous sections 169 and 232 is to protect the assets for equitable distribution among those entitled, and to prevent the administration being embarrassed by a general scramble of creditors. When a winding up order has been made, the combined effect of sections 171 and 232 is that such order operates automatically as a stay of all actions, executions, distresses, etc., against the company, subject to the discretion of the court to allow such actions, executions, etc., to proceed not with standing the winding up. The winding up of a company by the court involves the realisation and protection of assets and an administration of its affairs by the court. Consequently once the court has taken the assets of a comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is a proceeding against the liquidator as an individual. This was pointed out by Pearson J. in his judgment at page 270. Where a proceeding is taken against the official liquidator in his capacity as such, the trend of the decisions is to regard it as a proceeding against the company and thereby it attracts the restriction provided for in this section. See the observations of Huddleston B. in Graham v. Edge [1888] 20 QBD 538 at pp. 539-540, and also R. v. Lord Mayor etc. of London [1893] 2 QB 146. As regards actions, even actions by the Crown would come under the prohibition of this section: Bank of Bihar v. Secretary of State [1931] 134 IC 429. But an order passed by the Custodian of Evacuee Property under Bombay Act XXIV of 1949 vest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icial Liquidator [1929] ILR 51 All. 695. The court may in the exercise of its discretion grant leave unconditionally or may impose terms as a condition of granting leave. Cases in which the company is the sole defendant: As a general rule unless the question at issue in the action or proceeding is one which cannot be properly determined in the winding up, leave will be refused: In re Pool Fire Brick Co. [1873] LR 17 Eq 268; In re Keynsham Co. [1863] 33 Bea v. 123 Where, however, the question at issue is such that it cannot be conveniently gone into in the winding up, leave will generally be given: Wilson v. Natal Investment [1867] 36 LJ Ch 312. Cases where the company is a necessary party to the action but there are other defendants as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s to the same. The right to have the fair rent fixed under the Madras Buildings (Lease and Rent Control) Act, is a right vested in both the applicants and the respondents and that right is not taken away by reason of any agreement between the parties. The order fixing a fair rent has to be made only by the Rent Controller after taking into consideration the various factors set out in the section and it is in the exclusive jurisdiction of the Rent Controller to fix the rent. But no order could be passed by the winding up court. In the result, the leave is granted and there is no necessity to impose terms because the reply affidavit states that the applicants are now paying Rs. 200 per month and which they will continue to do till the dispo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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