Companies Act, 1956
Sec 526 - Effect of supervision order.
(1) Where an order is made for a winding up subject to supervision, the liquidator may, subject to any restrictions imposed by the Court, exercise all his powers, without the sanction or intervention of the Court, in the same manner as if the company were being wound up altogether voluntarily.
(2) Except as provided in sub-section (1), any order made by the Court for a winding up subject to the supervision of the Court, shall for all purposes, including the staying of suits and other proceedings, be deemed to be an order of the Court for winding up the company by the Court, and shall confer full authority on the Court to make calls or to enforce calls made by the liquidators, and to exercise all other powers which it might have exercised if an order had been made for winding up the company altogether by the Court.
(3) In the construction of the provisions whereby the Court is empowered to direct any act or thing to be done to or in favor of the liquidator, the expression " liquidator " shall be deemed to mean the liquidator conducting the winding up, subject to the supervision of the Court.