Companies Act Section 348 — Information as to pending liquidations
CHAPTER XX WINDING UP
Commercial / Corporate
Summary
Sub-section (1) requires the Company Liquidator to file a statement with the Tribunal if the winding up of a company is not finished within one year of its start. This statement must be filed within two months after that first year ends, and then again at intervals of no more than one year (or shorter intervals if prescribed) until the winding up is complete. The statement must be in the prescribed form, contain the prescribed particulars, and be audited by a person qualified to act as the company's auditor. The Liquidator does not have to file this statement if the Central Government exempts them from doing so, either wholly or in part. Also, no audit is needed if the provisions of section 294 apply.
Sub-section (2) states that when the statement is filed with the Tribunal under clause (a) of sub-section (1), a copy must also be filed with the Registrar at the same time. The Registrar must keep this copy along with the other records of the company.
Sub-section (3) deals with Government companies in liquidation. If the statement relates to a Government company, the Company Liquidator must forward a copy of it to the Central Government if that Government is a member of the company, to any State Government if that Government is a member, or to both the Central Government and any State Government if both are members.
Sub-section (4) gives any person who states in writing that they are a creditor or contributory of the company the right to inspect the statement filed under sub-section (1). This can be done by the person themselves or through an agent, at all reasonable times, upon payment of the prescribed fee. They are also entitled to receive a copy of the statement or an extract from it.
Sub-section (5) says that if any person fraudulently claims to be a creditor or contributory under sub-section (4), they are considered guilty of an offence under section 182 of the Indian Penal Code. On the application of the Company Liquidator, they shall be punished accordingly.
Sub-section (6) applies when the Company Liquidator is an insolvency professional registered under the Insolvency and Bankruptcy Code, 2016. If such a Liquidator fails to comply with the provisions of this section, that failure is treated as a contravention of the Insolvency and Bankruptcy Code and its rules and regulations, for the purpose of proceedings under chapter VI of Part IV of that Code.
Official Text
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(1) If the winding up of a company is not concluded within one year after its commencement, the Company Liquidator shall, unless he is exempted from so doing, either wholly or in part by the Central Government, within two months of the expiry of such year and thereafter until the winding up is concluded, at intervals of not more than one year or at such shorter intervals, if any, as may be prescribed, file a statement in such form containing such particulars as may be prescribed, duly audited, by a person qualified to act as auditor of the company, with respect to the proceedings in, and position of, the liquidation, with the Tribunal:
Provided that no such audit as is referred to in this sub-section shall be necessary where the provisions of section 294 apply.]
(2) When the statement is filed with the Tribunal under clause (a) of sub-section (1), a copy shall simultaneously be filed with the Registrar and shall be kept by him along with the other records of the company.
(3) Where a statement referred to in sub-section (1) relates to a Government company in liquidation, the Company Liquidator shall forward a copy thereof—
(a) to the Central Government, if that Government is a member of the Government company;
(b) to any State Government, if that Government is a member of the Government company; or
(c) to the Central Government and any State Government, if both the Governments are members of the Government company.
(4) Any person stating himself in writing to be a creditor or contributory of the company shall be entitled, by himself or by his agent, at all reasonable times, on payment of the prescribed fee, to inspect the statement referred to in sub-section (1), and to receive a copy thereof or an extract there from.
(5) Any person fraudulently stating himself to be a creditor or contributory under sub-section (4) shall be deemed to be guilty of an offence under section 182 of the Indian Penal Code (45 of 1860), and shall, on the application of the Company Liquidator, be punishable accordingly. 1[
(6) Where a Company Liquidator, who is an insolvency professional registered under the Insolvency and Bankrupt Code, 2016 (31 of 2016) is in default in complying with the provisions of this section, then such default shall be deemed to be a contravention of the provisions of the said Code, and the rules and regulations made thereunder for the purpose of proceedings under chapter VI of Part IV of that Code.] 2* * * * *