Companies Act Section 282 — Directions of Tribunal on report of Company Liquidator
CHAPTER XX WINDING UP
Commercial / Corporate
Summary
Sub-section (1) states that when the Tribunal looks at the Company Liquidator's report, it must set a time limit for finishing the entire winding-up process and dissolving the company. However, the Tribunal can change this time limit at any point during the proceedings, either on its own view or after reviewing reports from the Company Liquidator and hearing the Company Liquidator, creditors, contributories, or any other interested person, if it believes that continuing the proceedings would not be advantageous or economical.
Sub-section (2) allows the Tribunal, after examining the Company Liquidator's reports and hearing the Company Liquidator, creditors, contributories, or any other interested person, to order the sale of the company as a going concern, or the sale of its assets or part of its assets. The Tribunal may also, if it considers it appropriate, appoint a sale committee made up of creditors, promoters, and officers of the company as the Tribunal decides, to help the Company Liquidator with the sale under this sub-section.
Sub-section (3) says that if a report is received from the Company Liquidator, the Central Government, or any person stating that a fraud has been committed regarding the company, the Tribunal must order an investigation under section 210, without stopping the winding-up process. After considering the investigation report, the Tribunal may pass orders and give directions under sections 339 to 342, or direct the Company Liquidator to file a criminal complaint against the people involved in committing the fraud.
Sub-section (4) permits the Tribunal to order any steps and measures that may be necessary to protect, preserve, or enhance the value of the company's assets.
Sub-section (5) allows the Tribunal to pass any other order or give any other directions that it considers fit.
Official Text
(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:
Provided 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:
Provided 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.
(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.
(5) The Tribunal may pass such other order or give such other directions as it considers fit.