In Brief
The State of Madhya Pradesh sought leave to file a suit in liquidation proceedings of Hukumchand Mills Ltd. under Section 446 of the Companies Act, 1956, claiming ownership of land under lease to the liquidating company. The High Court had rejected this application, holding the State had no stake because the lease was between the Municipal Corporation and the company. The Supreme Court set aside that order and remitted the matter to the Company Judge for fresh consideration on merit, without being bound by prior observations, directing expeditious disposal within two months. The Court left all contentions of the State, secured creditors, and workmen open for the Company Judge to address.
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