ABSTRACT
The position in relation to liquidation differs somewhat depending upon whether the liquidation is voluntary or compulsory. Where a company has gone into compulsory liquidation or a provisional liquidator has been appointed, s 130(2) of the Insolvency Act 1986 provides that no action or proceeding shall be proceeded with or commenced against the company or its property except with the leave of the court. ‘Action or proceeding’ was held in Re Memco Engineering Ltd6 to include any type of distress. In a voluntary winding up, or where a petition for compulsory liquidation has been presented but not yet adjudicated upon, there is no automatic stay, but the court may on application by an interested party restrain proceedings.7 It was held in Re Roundwood Colliery Co8 that the court would exercise its power to stay in a voluntary liquidation in those circumstances in which it would not give leave under s 130(2) in a compulsory liquidation.
