JUDGMENT

B. P. JEEVAN REDDY, J.:—Leave granted.

2. The appeal is directed against the judgment of a Division Bench of the Bombay High Court in Appeal No. 777 of 1986 disposing of the appeal preferred by the appellant with certain directions.

3. Khandesh Spinning and Weaving Mills Pvt. Ltd. went into liquidation at the instance of a creditor. The order of winding up was passed on September 19, 1984 in Company Petition No.59 of 1984. The official liquidator was appointed as the liquidator for the company.

4. The company was the tenant of a flat situated at Church-gate, Bombay. It is a fairly big flat having an area of 3500 sq. ft. The company had its registered office in the said flat until it was shifted to Jalgaon sometime prior to July, 1979.

5. The appellant is the sister of one of the directors of the company. Her husband was the Manager of the company. According to her, she entered into an agreement with the company on July 15, 1979 whereunder a sub-tenancy was created in her favour in respect of the said flat except for a small area of 150 sq. ft. which was retained by the company. According to her, the landlord had orally consented to the creation of sub-tenancy in her favour. The rent of the flat payable to the landlord was Rs. 900/- per month. Under the said agreement, the appellant was to pay Rs. 600/- every month to the company. She says further that she was put in possession of the said portion on the date of agreement and has continued in possession ever since.

6. The liquidator appointed by court for the company took possession of the entire flat in October, 1984. He sealed it. Against the order of winding up dated September 19, 1984, an appeal was preferred and the operation of the order including the appointment of the liquidator. stayed on October 29, 1984. Soon thereupon, the appellant wrote to the official liquidator (on October 30, 1984) calling upon him to allow her to use the premises in her occupation without any hindrance or disturbance from him. In this letter, she referred to the agreement of sub-tenancy arrived at with the company in or about March, 1979 and stated that the agreement is lying in the said premises sealed by official liquidator and that the exact portion given to her is delineated in the plan annexed to the agreement. She asserted that since the date of agreement, she has been in possession of the premises, paying the agreed rent to the company without any default. The premises were sealed, she said, during her absence and that she discovered the same only on her return from Indore on October 29, 1984.

7. The official liquidator delivered possession of the premises to the appellant.

8. In the appeal preferred against the order of winding up, a Division Bench of the Bombay High Court, by its order dated January 31, 1985, appointed a provisional liquidator. The appeal was dismissed later on September 9, 1985.

9. In November, 1984 the appellant filed a suit, being suit No. 4873 of 1984, in the court of Small Causes for a declaration that she is the lawful tenant and/ or protected sub-tenant of the said flat (excluding the portion reserved for the company) and for an injunction restraining the defendant from interfering with her possession and enjoyment. The sole defendant to the suit was "Khandesh Spinning and Weaving Mills Pvt. Ltd. having its registered office at Station Road, Jalgaon (Maharashtra State)". The appellant also applied for and obtained a temporary injunction against the defend ant-company. Sometime in October, 1985, the official liquidator appeared in the suit on behalf of the defendant and raised an objection that without the leave of the company-court, the suit cannot proceed. Evidently to meet this objection the appellant applied to the company Judge (High Court of Bombay) on March 12, 1986 for grant of leave to proceed with the suit under S. 446 of the Companies Act. The application was registered as Company Application No. 38 of 1986. The official liquidator filed an applicati