The Company Court has jurisdiction under Section 446 (2) of the Companies Act, 1956, to entertain and dispose of suits and proceedings relating to the winding up of a company, including claims, priorities, and other questions, to facilitate winding up proceedings and protect the assets of the company.

P. S. MISHRA, C. J.

( 1 )

( 2 ) THESE appeals are preferred under clause 15 of the Letters Patent of the Court against a commonjudgment in applications under Sections 446 (1) and 453 of the companies Act, 1956 read with Rule 9 of the companies (Court) Rules, 1959. These applications have been filed to continue the suits filed in the Bombay High Court against the Company under liquidation, with the leave of the Company Court, for recovery of the dues on securities. Learned Company judge has granted the prayer and also the prayer to continue the Receiver in respect of such securities as already appointed by the courts in which the suits have been filed. Learned Company Judge has over-ruled the objections ofthe debtors includingthe fourth respondent - appellant to the above and granted leave to continue the suits. Learned company Judge has proceeded mainly on the principle that whether to stand outside or participate in the winding up proceedings is a matter for secured creditor to decide.

( 3 ) SECTION 446 of the Companies Act, 1956, which is comparableto Section 171 of the Indian Companies Act, 1913, and section 231 ofthe English Act, 1948, and section 525 of the English Act, 1985, has undergone an amendment in the year 1960. The amended provision reads as follows:"446. Suits stayed on winding up order:- (1) When a winding-up order has been made or the official liquidator has been appointed as provisional liquidator, no suit or other legal proceeding shall be commenced, or if pending at the date of winding-up order, shall be proceeded with, against the company except by leave of the court and subject to such terms as the court may impose. (2) The court which is winding up the company shall, not with standing anything contained in any other law for the time being in force, have jurisdiction, to entertain, or dispose of (a) any suit or proceeding by or against the company; (b) any claim made by or against the company (including claims by or against any of its branches in India); (c) any application made under Section 391 by or in respect of the company; (d) any question of priorities or any other question whatsoever, whether of law or fact, which may relate to or arise in course of the winding-up of the company; whether such suit or proceeding has been instituted, or is instituted, or such claim or question has arisen or arises or such application has been made or is made before or after the order for the winding-up of the company, or before or after the commencement of the companies (Amendment) Act, 1960. (3) Any suit or proceeding by or against the company which is pending in any court other than that in which the winding- up of the company is proceeding may, not with standing anything contained in any other law for the time being in force, be transferred to and disposed of by that court. (4) Nothing in sub-section (1) or subsection (3) shall apply to any proceeding pending in appeal before the Supreme court or a High Court. "

( 4 ) THIS Section provides that the Court, which is winding up the company, shall, notwithstanding anything contained in any other law for the time being in force, have jurisdiction to entertain or dispose of any claim made by or against the company; any question of priorities or any other question whatsoever, whether of law or fact, which may relate to or arise in course of the winding-up of the company. Sub-section (3) confers power upon the court to withdraw any proceeding either by the company or pending against the company in any court, to itself and to dispose it of according to law. Therefore, when the High Court is conducting winding-up proceedings of a company ordered to be wound up, itsjurisdiction is not confined to its ordinary jurisdiction but a special jurisdiction is conferred upon it. If there is a suit or a proceeding by the company or against the company pending in any court, the same can be withdrawn and disposed of by the High Court. It may be that such a suit or proceeding would not o

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