Companies Act Section 362 — Sale of assets and recovery of debts due to company

CHAPTER XX WINDING UP

Commercial / Corporate

Summary

Sub-section (1) requires the Official Liquidator to sell off all the company's assets, whether movable or immovable, as quickly as possible and within sixty days of being appointed.

Sub-section (2) requires the Official Liquidator to send a notice within thirty days of appointment to the company's debtors or contributories, asking them to deposit any amount they owe to the company with the Official Liquidator within thirty days of receiving that notice.

Under sub-section (3), if a debtor fails to deposit the amount as required under sub-section (2), the Central Government may, upon an application made by the Official Liquidator, pass any orders it considers appropriate.

Sub-section (4) states that any money recovered under this section by the Official Liquidator must be deposited in accordance with the provisions of section 349.

Official Text

(1) The Official Liquidator shall expeditiously dispose of all the assets whether movable or immovable within sixty days of his appointment.

(2) The Official Liquidator shall serve a notice within thirty days of his appointment calling upon the debtors of the company or the contributories, as the case may be, to deposit within thirty days with him the amount payable to the company.

(3) Where any debtor does not deposit the amount under sub-section (2), the Central Government may, on an application made to it by the Official Liquidator, pass such orders as it thinks fit.

(4) The amount recovered under this section by the Official Liquidator shall be deposited in accordance with the provisions of section 349.