Companies Act, 1956
Sec 442 - Power of Court to stay or restrain proceedings
against company.
At any time after the presentation of a winding up petition and
before a winding up order has been made, the company, or any creditor or
contributory, may--
(a) where any suit or proceeding against the
company is pending in the Supreme Court or in any High Court, apply to the
Court in which the suit or proceeding is pending for a stay of proceedings
therein ; and
(b) where any suit or proceeding is pending
against the company in any other Court, apply to the Court having jurisdiction
to wind-up the company, to restrain further proceedings in the suit or
proceeding ;
and the Court to which application is so made
may stay or restrain the proceedings accordingly, on such terms as it thinks
fit.