Section 282: Directions of Tribunal on report of Company Liquidator
This section is for the Tribunal to give directions based on the Company Liquidator's report and take necessary actions to complete the winding-up proceedings.
The section, clause by clause
What the section says
In plain terms
(1)The Tribunal shall, on consideration of the report of the Company Liquidator, fix a time limit within which the entire proceedings shall be completed and the company be dissolved:
The Tribunal will set a time limit to complete the proceedings and dissolve the company, which can be revised if it decides that continuing the proceedings is not advantageous or economical.
provisoProvided that the Tribunal may, if it is of the opinion, at any stage of the proceedings, or on examination of the reports submitted to it by the Company Liquidator and after hearing the Company Liquidator, creditors or contributories or any other interested person, that it will not be advantageous or economical to continue the proceedings, revise the time limit within which the entire proceedings shall be completed and the company be dissolved.
(2)The Tribunal may, on examination of the reports submitted to it by the Company Liquidator and after hearing the Company Liquidator, creditors or contributories or any other interested person, order sale of the company as a going concern or its assets or part thereof:
The Tribunal can order the sale of the company or its assets, and may appoint a sale committee to assist the Company Liquidator with the sale.
provisoProvided that the Tribunal may, where it considers fit, appoint a sale committee comprising such creditors, promoters and officers of the company as the Tribunal may decide to assist the Company Liquidator in sale under this sub-section.
(3)Where a report is received from the Company Liquidator or the Central Government or any person that a fraud has been committed in respect of the company, the Tribunal shall, without prejudice to the process of winding up, order for investigation under section 210, and on consideration of the report of such investigation it may pass order and give directions under sections 339 to 342 or direct the Company Liquidator to file a criminal complaint against persons who were involved in the commission of fraud.
If a report of fraud is received, the Tribunal will order an investigation and may pass orders or give directions based on the investigation report, or direct the Company Liquidator to file a criminal complaint.
(4)The Tribunal may order for taking such steps and measures, as may be necessary, to protect, preserve or enhance the value of the assets of the company.
The Tribunal can order steps to be taken to protect, preserve, or enhance the value of the company's assets.
(5)The Tribunal may pass such other order or give such other directions as it considers fit.
The Tribunal can pass any other order or give any other direction it considers necessary.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs. by Act 29 of 2020, s. 46, for sub-section (2) (w.e.f. 21-12-2020).
This section refers to
s. 210 Investigation into affairs of companys. 339 Liability for fraudulent conduct of businesss. 340 Power of Tribunal to assess damages against delinquent directors, etcs. 341 Liability under sections 339 and 340 to extend to partners or directors in firms or companiess. 342 Prosecution of delinquent officers and members of company
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.