Companies Act Section 250 — Effect of company notified as dissolved

Summary

Where a company is dissolved under section 248, it stops operating as a company from the date stated in the notice given under sub-section (5) of that section. From that date, its Certificate of Incorporation is treated as cancelled, but only for most purposes.

The cancellation does not apply when the company needs to collect money owed to it or to pay off or settle its own debts and obligations. In those specific situations, the company can still act as if it were not dissolved.

Official Text

Where a company stands dissolved under section 248, it shall on and from the date mentioned in the notice under sub-section (5) of that section cease to operate as a company and the Certificate of Incorporation issued to it shall be deemed to have been cancelled from such date except for the purpose of realising the amount due to the company and for the payment or discharge of the liabilities or obligations of the company.

Sections referred to

• Companies Act §248 — Power of Registrar to remove name of company from register of companies

Referred to by

• Companies Act §445 — Compensation for accusation without reasonable cause

Related Judgments

• RAVINDER KUMAR AGGARWAL vs INCOME TAX OFFICER,, WARD 20(3) NEW DELHI — Delhi High Court (2022)
• Real Time Interactive Media Pvt. Ltd. vs Metro Mumbai Infradeveloper Pvt. Ltd — Bombay High Court (Mumbai Principal Seat) (2018)
• Mr. Kanwal Chaudhary, Mr. Dinesh; Priani, Mr. Ankit Kumar, Mr. Komal; vs STATE OF NCT OF DELHI & ANR — Delhi High Court (2025)
• ORS. vs ANSAL & ORS — Delhi High Court (2023)
• Ramesh Harilal Mehta & Ors. vs The Court Receiver — Bombay High Court (Mumbai Principal Seat) (2025)