Companies Act Section 273 — Powers of Tribunal
CHAPTER XX WINDING UP
Commercial / Corporate
Summary
Sub-section (1) sets out the orders the Tribunal can pass when it receives a winding up petition under section 272. These orders are: dismissing the petition, with or without costs; making any interim order it thinks fit; appointing a provisional liquidator of the company until a winding up order is made; making an order for the winding up of the company, with or without costs; or passing any other order it thinks fit.
The first proviso to sub-section (1) states that any order under this sub-section must be made within ninety days from the date the petition is presented. The second proviso states that before appointing a provisional liquidator under clause (c), the Tribunal must give notice to the company and give it a reasonable opportunity to make its representations, unless the Tribunal thinks fit to dispense with such notice for special reasons that must be recorded in writing. The third proviso states that the Tribunal cannot refuse to make a winding up order only because the company's assets have been mortgaged for an amount equal to or more than those assets, or because the company has no assets.
Sub-section (2) deals with a petition presented on the ground that it is just and equitable for the company to be wound up. In such a case, the Tribunal may refuse to make a winding up order if it is of the opinion that some other remedy is available to the petitioners and that they are acting unreasonably in seeking to have the company wound up instead of pursuing that other remedy.
Official Text
(1) The Tribunal may, on receipt of a petition for winding up under section 272 pass any of the following orders, namely:—
(a) dismiss it, with or without costs;
(b) make any interim order as it thinks fit;
(c) appoint a provisional liquidator of the company till the making of a winding up order;
(d) make an order for the winding up of the company with or without costs; or
(e) any other order as it thinks fit:
Provided that an order under this sub-section shall be made within ninety days from the date of presentation of the petition:
Provided further that before appointing a provisional liquidator under clause (c), the Tribunal shall give notice to the company and afford a reasonable opportunity to it to make its representations, if any, unless for special reasons to be recorded in writing, the Tribunal thinks fit to dispense with such notice:
Provided also that the Tribunal shall not refuse to make a winding up order on the ground only that the assets of the company have been mortgaged for an amount equal to or in excess of those assets, or that the company has no assets.
(2) Where a petition is presented on the ground that it is just and equitable that the company should be wound up, the Tribunal may refuse to make an order of winding up, if it is of the opinion that some other remedy is available to the petitioners and that they are acting unreasonably in seeking to have the company wound up instead of pursuing the other remedy.