Patna High Court
Bindeshwar ChoudharyversusThe State of Bihar
- Decided
- Disposal
- DISPOSED
- Bench
- HARISH KUMAR
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
- Companies Act, 1956 — s. 466
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
2/4
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
3/4
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
Checking your session…
Lawyer court records for this case
Associated through the court’s case reference.