The winding up order shall be deemed to be notice of discharge to the officers and employees of the company except when the business of the company is continued [Sec. 445 (3)]. 4. The powers of the board of directors will terminate and these will vest in the Official Liquidator, who shall by virtue of his office become the liquidator of the company. 5. No suit or other legal proceedings 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 court and subject to such terms as the court may impose. Any suit or proceedings by or against the company which is pending in any court other than that in which the winding up of the company is proceeding, will also be transferred to and disposed of by that court.
However, these provisions will not be applicable to any proceedings pending in appeal before the Supreme Court or a High Court (Sec. 446). 6.
The winding up order shall operate in favour of all creditors and all the contributories of the company and they can avail themselves of it, as if the order was passed on a petition filed by all of them jointly (Sec. 447).