The Patna High Court has held that a pending commercial suit involving a company under liquidation cannot proceed without leave of the National Company Law Tribunal (NCLT).
“once a winding up order is passed, no suit or other legal proceedings shall be commenced or if pending at the date of the winding up order, shall be proceeded with, by or against the company except with the leave of the Tribunal and subject to such terms that the Tribunal may impose,” a Bench of Justices Rajeev Ranjan Prasad and Sunil Dutta Mishra observed.
The Bench made the observation while setting aside a judgment passed by the Principal District Judge-cum-Commercial Court, Muzaffarpur, in a dispute involving Tecpro Systems Limited, which was under…