Companies Act Section 231 — Power of Tribunal to enforce compromise or arrangement
CHAPTER XV COMPROMISES, ARRANGEMENTS AND AMALGAMATIONS
Commercial / Corporate
Summary
Sub-section (1) gives the Tribunal the authority to oversee how the compromise or arrangement is actually carried out. It also allows the Tribunal, either when it first approves the scheme or at any later point, to issue directions on any matter or make changes to the scheme that it thinks are needed to ensure the scheme is properly implemented.
Sub-section (2) states that if the Tribunal is convinced that the approved compromise or arrangement cannot be carried out satisfactorily, even with changes, and the company is not able to pay its debts according to the scheme, the Tribunal can order the company to be wound up. This winding-up order is treated as if it were made under section 273.
Sub-section (3) says that this section also applies, as far as possible, to a company that had a compromise or arrangement approved by an order made before this Act came into force.
Official Text
(1) Where the Tribunal makes an order under section 230 sanctioning a compromise or an arrangement in respect of a company, it—
(a) shall have power to supervise the implementation of the compromise or arrangement; and
(b) may, at the time of making such order or at any time thereafter, give such directions in regard to any matter or make such modifications in the compromise or arrangement as it may consider necessary for the proper implementation of the compromise or arrangement.
(2) If the Tribunal is satisfied that the compromise or arrangement sanctioned under section 230 cannot be implemented satisfactorily with or without modifications, and the company is unable to pay its debts as per the scheme, it may make an order for winding up the company and such an order shall be deemed to be an order made under section 273.
(3) The provisions of this section shall, so far as may be, also apply to a company in respect of which an order has been made before the commencement of this Act sanctioning a compromise or an arrangement.