Proceedings under the Public Premises (Eviction of Unauthorised Occupants) Act, 1971 are legal proceedings within the meaning of Section 446 (1) of the Companies Act, 1956, and therefore, leave of the winding up court is required to be obtained before initiating such proceedings.

( 1 ) THE question referred to the Full Bench is whether before initiating proceedings under Section 4 and 7 of the Public Premises (Eviction of Unauthorised Occupants) Act 1,971 (hereinafter to be called the 1971 Act) the Life Insurance Corporation (hereinafter referred to as LIC) is required under law to seek leave of the winding up Court under Section 446 of the Companies Act 1956 ?

( 2 ) WINDING up proceedings were started against M/s. Asia Udyog (P) Ltd. It is common case that an order for wading up had been passed on 2-2-1978 and the winding up proceedings are pending in this court. The company was admittedly a tenant of the premises at 8, Darya Ganj, Delhi. The said premises also admittedly belong to LIC. 1971 Act defines public Premises and it is common case of the parties that the premises in dispute are covered by the definition of Section 2 (c) of 1971 Act.

( 3 ) "the case of the LIC is that because of the various unlawful acts done by the company its possession was unauthorised and it was entitled to seek possession of the premises in dispute and that also these premises Were required for its own use. It asked for possession of the premises from the Official Liquidator. The LIC also claims that the company is in unauthorised occupation since 31-3-1976 and it is. therefore. Itable to pay damages to the applicant LIC. Apparently the Official Liquidator to whom request was made to vacate the premises advised the LIC to seek the leave of the Company Judge under Section 446 of the Companies Act for initiating the proceedings under 1971 Act. Hence an application under Section 446 (1) was filed by LIC. As leave application was opposed by the Official Liquidator LIC made bold and urged before the single Judge that though it had filed the leave application in fact it was not necessary to do so as Section 446 (1) was inapplicable to proceedings under 1971 Act. The learned Judge also felt that this matter was important enough to require consideration by the Full Bench arid that is how the matter has been placed before us.

( 4 ) SECTION 446 (1) provides that when a winding up order has been made no suit or other legal proceedings shall bu commenced. . . . . . . . against the Company excepting by leave of court and subject to such terms as the court may impose. Section 446 (2) says 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 (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); It is no body s case that the proceedings before the Estate Officer under the 1971 Act are by way of suit. But what is urged by the Official Liquidator is that they are certainly legal proceedings and, therefore, Section 446 (1) is applicable. Before dealing with the meaning of the word "legal proceedings" it will be proper to appreciate the nature of the proceedings under the Act of 1971. The Act of 1971 was enacted to provide for a speedy machinery for the eviction of unauthorised occupants from public premises. It also provides for recovery of rent or damages for unauthorised occupation. Public premises are defined to mean and include premises owned by any Corporation established by or under a Central Act and that is why the LIC which is constituted under the LIC Act is entitle to proceed under the Act of 1971 with regard to premises belonging to it. Section 4 provides for the Estate Officer if he is of the opinion that any person is in unauthorised occupation, to issue show cause notice and if he finds that public premises are in unauthorised occupation, to order eviction under Section 5. Section 7 also empowers the Estate Officer to require payment of rent or damages in respect of public premises. It is important to note that the 1971 Act was proceeded by a Public premises (Eviction of Unauthorise