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Patna High Court

Bindeshwar ChoudharyversusThe State of Bihar

Decided
Disposal
DISPOSED

Holding

The writ petition is not maintainable as the company is under liquidation and the matter is pending before the Company Court; the petitioner may appeal to the Company Court with condonation of delay.

Summary

The petitioner, Bindeshwar Choudhary, filed a writ petition in the Patna High Court seeking the payment of a claim of Rs.1,68,093 against the Bihar State Small Industries Corporation Ltd., which is under liquidation. The Official Liquidator had admitted the amount on a pro rata basis and rejected the remaining claim of Rs.15,88,124, offering the petitioner an opportunity to appeal before the Company Court, which he did not pursue. The petitioner argued financial hardship and cited a Supreme Court direction in a related employee liability case, seeking relief through the writ. The Court examined the maintainability of the writ under Section 466 of the Companies Act, 1956, which restricts legal proceedings against a company in liquidation without leave of the Company Court. Concluding that the matter was already pending before the Company Court (Company Petition No. 05 of 1999), the Court held the writ petition inadmissible but allowed the petitioner to file an appeal with condonation of delay. Consequently, the writ petition was disposed of.

Issues considered

  • Whether the writ petition is maintainable under Section 466 of the Companies Act, 1956 given that the company is under liquidation.
  • Whether the petitioner can challenge the Official Liquidator's rejection of his claim without filing an appeal before the Company Court.

Legislation cited

Subjects

  • writ petition
  • liquidation
  • Companies Act
  • Section 466
  • official liquidator
  • claim denial
  • appeal
  • condonation of delay
  • employee liability

Judgment

          IN THE HIGH COURT OF JUDICATURE AT PATNA
                   Civil Writ Jurisdiction Case No.14449 of 2023
     ======================================================
     Bindeshwar Choudhary, Son of Late Dev Narayan Chaudhary, Resident of
     Village- Chahuta, P.S.- Bisfi, District- Madhubani.

                                                               ... ... Petitioner/s
                                       Versus

1.   The State of Bihar through the Additional Chief Secretary, Department of
     Industries, Vikas Bhawan, Baily Road, Patna.
2.   The Managing Director, Bihar State Small Industries Corporation Ltd. B.C.I.
     Building, Patna (In Liquidation).
3.   Manager, Industrial Raw Material Depot Kokar Ranchi, State of Jharkhand.
4.   The Registrar of Company, Patna High Court, 4th floor Maurya Lok
     Complex, Patna, Bihar.
5.   Assistant Official liquidator, High Court at Patna, 4th floor Maurya Lok
     Complex, Patna, Bihar.

                                               ... ... Respondent/s
     ======================================================
     Appearance :
     For the Petitioner/s   :      Mr. Braj Kishore Singh, Advocate
                                   Mr. Kishore Kumar Thakur, Advocate
     For the Respondent/s   :      Mr. Wasim Mohammad, AC to SC- 6
     For the O.L.           :      Mr. Nikhil Kumar Agrawal, Advocate
     ======================================================
     CORAM: HONOURABLE MR. JUSTICE HARISH KUMAR
     ORAL JUDGMENT

      Date : 30-06-2026

                       Heard Mr.     Kishore     Kumar Thakur,          learned

      Advocate for the petitioner and Mr. Waism Mohammad, learned

      Advocate for the State. The Official Liquidator is represented

      through Mr. Nikhil Kumar Agrawal, learned Advocate.

                       2. Before coming to the merit of the case, a

      preliminary objection has been raised with regard to the
Patna High Court CWJC No.14449 of 2023 dt.30-06-2026
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         maintainability of the writ petition in terms with the provision of

         Section 466 of the Companies Act, 1956, which provides that

         when a winding up order has been passed or when an Official

         Liquidator has been appointed as provisional liquidator, then in

         that case, no suit or other legal proceeding shall be commenced,

         or if pending at the date of the winding up order, shall be

         proceeded with, against the company, except by leave of the

         Company Court and subject to such terms as the said Court may

         impose.

                        3. It is specifically contended that since the

         Company is under liquidation and moreover the claim of the

         petitioner was duly heard and upon notice the petitioner

         submitted his response and subsequently it has been found that

         the petitioner is entitled to an amount of Rs.1,68,093/- and

         rejected the remaining claim of Rs.15,88,124/-, the petitioner

         had the liberty to challenge the same before the Company Court

         in Appeal, but the same has not been done. It is also submitted

         that the petitioner has been paid the admissible amount on Pro

         rata basis and the remaining amount, if any, shall be paid on the

         similar basis.

                        4. Learned Advocate for the petitioner submitted

         that the petitioner is facing extreme financial crunch as well as
Patna High Court CWJC No.14449 of 2023 dt.30-06-2026
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         on account of serious ailment, he is not in a position to pursue

         the remedy. He further submits that the Bihar State Ardh Sarkari

         Arajpati Karamchari Maha Sangh through its General Secretary

         Shri Awadh Kishore Sharma & Ors. Vs. The State of Bihar &

         Ors. in WP(c) No. 932 of 2022, the Hon’ble Supreme Court has

         given certain direction, including the direction that there is

         substantial liability due with respect to the employees loacted

         within the State of Bihar Unit of BSIDC. The State Government

         shall clear all such liabilities of the employees located in Bihar

         within a period of two months and submit a compliance report

         by the next date.

                        5. Having considered the submissions advanced by

         the learned Advocate for the respective parties. Since this Court

         is of the opinion that the Company went in liquidation and the

         matter is pending under consideration before the Company

         Court in Company Petition No. 05 of 1999, this Court does not

         find any reason to entertain the present writ petition. However, it

         is made clear that the petitioner shall be at liberty to challenge

         the order whereby his claim has been negated by the Official

         Liquidator,. In case, the petitioner files an appropriate petition

         for condonation of delay in filing appeal by stating all the facts,

         including the fact of pendency of the writ petition, the same
             Patna High Court CWJC No.14449 of 2023 dt.30-06-2026
                                                        4/4




                      shall be considered in accordance with law.

                                     6. With the aforesaid liberty, the writ petition stands

                      disposed of.



                                                  (Harish Kumar, J)

uday/-
AFR/NAFR                NAFR
CAV DATE                NA
Uploading Date          01.07.2026
Transmission Date       NA


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