Section 348: Information as to pending liquidations
This section requires Company Liquidators to file regular statements with the Tribunal about the progress of a company's liquidation, and makes these statements available to creditors and contributories.
The section, clause by clause
What the section says
In plain terms
(1)If the winding up of a company is not concluded within one year after its commencement, the Company Liquidator shall, unless he is exempted from so doing, either wholly or in part by the Central Government, within two months of the expiry of such year and thereafter until the winding up is concluded, at intervals of not more than one year or at such shorter intervals, if any, as may be prescribed, file a statement in such form containing such particulars as may be prescribed, duly audited, by a person qualified to act as auditor of the company, with respect to the proceedings in, and position of, the liquidation, with the Tribunal:
If a company's winding up is not concluded within one year, the Company Liquidator must file a statement with the Tribunal every year, or at shorter intervals if prescribed, until the winding up is concluded, unless exempted by the Central Government.
provisoProvided that no such audit as is referred to in this sub-section shall be necessary where the provisions of section 294 apply.]
(2)When the statement is filed with the Tribunal under clause (a) of sub-section (1), a copy shall simultaneously be filed with the Registrar and shall be kept by him along with the other records of the company.
When the statement is filed with the Tribunal, a copy must also be filed with the Registrar and kept with the company's records.
(3)Where a statement referred to in sub-section (1) relates to a Government company in liquidation, the Company Liquidator shall forward a copy thereof—
For a Government company in liquidation, the Company Liquidator must forward a copy of the statement to the Central Government, any State Government that is a member, or both.
(3)(a)to the Central Government, if that Government is a member of the Government company;
(3)(b)to any State Government, if that Government is a member of the Government company; or (c) to the Central Government and any State Government, if both the Governments are members of the Government company.
(4)Any person stating himself in writing to be a creditor or contributory of the company shall be entitled, by himself or by his agent, at all reasonable times, on payment of the prescribed fee, to inspect the statement referred to in sub-section (1), and to receive a copy thereof or an extract there from.
A creditor or contributory of the company can inspect and receive a copy of the statement at reasonable times, on payment of the prescribed fee.
(5)Any person fraudulently stating himself to be a creditor or contributory under sub-section (4) shall be deemed to be guilty of an offence under section 182 of the Indian Penal Code (45 of 1860), and shall, on the application of the Company Liquidator, be punishable accordingly.
Anyone falsely claiming to be a creditor or contributory to access the statement commits an offence under the Indian Penal Code.
(6)Where a Company Liquidator, who is an insolvency professional registered under the Insolvency and Bankrupt Code, 2016 (31 of 2016) is in default in complying with the provisions of this section, then such default shall be deemed to be a contravention of the provisions of the said Code, and the rules and regulations made thereunder for the purpose of proceedings under chapter VI of Part IV of that Code.] 2*
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 31 of 2016, s. 255 and the Eleventh Schedule, for sub-section (1) (w.e.f. 15-11-2016).
- 2. The words “with imprisonment for a term which may extend to six months or” omitted by Act 29 of 2020, s. 49 (w.e.f. 21-12- 2020).
- 3. Subs. by s. 49, ibid., for “fifty thousand rupees, or with both” (w.e.f. 21-12-2020).
- 4. Subs. by s. 255 and the Eleventh Schedule, ibid., for sub-section (1) (w.e.f. 15-11-2016).
- 1. Subs. by Act 29 of 2020, s. 50, for sub-section (6) (w.e.f. 21-12-2020).
- 2. Sub-section (7) omitted by Act 29 of 2020, s. 50 (w.e.f. 21-12-2020).
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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.