Ganapati Sitaram Balvalkar And Another vs Waman Shripad Mage (Since Dead) Through ... on 10 August, 1981
13. Thereafter, the Division Bench considered the question as to whether it was really a case of court sale and whether even though the company voluntarily could not sell or transfer the assets, the official liquidator acting under the direction and control of the court, in exercise of the statutory power could effect such sale. It was contended on behalf of the appellant that the official liquidator was merely acting as an agent of the company and could not sell what the company was not empowered to transfer. The Division Bench accepted this contention of the appellant and held that the corporate existence of a company does not come to an end as soon as an order for winding-up of the company is passed. The assets in the custody of the liquidator continue to be the assets of the company. It was pointed out that the sale that was made in that case was by the official liquidator under the provisions of Section 456 on behalf of the company and was made in the name of the company. It was pointed out that the property of the company after the winding-up order did not vest in the official liquidator and that under Section 456 of the Companies Act, the liquidator merely had custody and control of the assets of the company.