THE RAJAH OF VIZIANAGARAM vs OFFICIAL RECEIVER, VIZIANAGARAM

The Supreme Court held that under the Indian Companies Act, 1913, specifically sections 270 to 276, foreign creditors are entitled to prove their claims in the winding up of an unregistered company. The Court ruled that the winding up order benefits all creditors, including foreign ones, and there is no basis to exclude them from asset distribution. The decision emphasized that liquidation proceedings in India are ancillary to those in the company's country of incorporation, allowing for equitable treatment of all creditors in the distribution of assets.