Companies Act Section 298 — Power to order costs

CHAPTER XX WINDING UP

Commercial / Corporate

Summary

If a company being wound up does not have enough assets to pay off all its debts, the Tribunal can decide how the costs, charges, and expenses of the winding-up process itself will be paid from those assets. The Tribunal has the power to set the order of priority among these costs, charges, and expenses, choosing what it considers to be just and proper.

Official Text

The Tribunal may, in the event of the assets of a company being insufficient to satisfy its liabilities, make an order for the payment out of the assets, of the costs, charges and expenses incurred in the winding up, in such order of priority inter se as the Tribunal thinks just and proper.