Companies Act Section 364 — Appeal by creditor

CHAPTER XX WINDING UP

Commercial / Corporate

Summary

Sub-section (1) allows a creditor who is unhappy with a decision made by the Official Liquidator under section 363 to challenge that decision. The creditor must file an appeal with the Central Government within thirty days of the decision being made.

Sub-section (2) states that the Central Government, after asking the Official Liquidator for a report on the matter, can either reject the appeal or change the Official Liquidator's decision.

Sub-section (3) requires the Official Liquidator to pay the creditors whose claims have been accepted.

Sub-section (4) permits the Central Government, at any point while claims are being settled, to send the matter to the Tribunal for necessary orders if the government considers it necessary.

Official Text

(1) Any creditor aggrieved by the decision of the Official Liquidator under section 363 may file an appeal before the Central Government within thirty days of such decision.

(2) The Central Government may after calling the report from the Official Liquidator either dismiss the appeal or modify the decision of the Official Liquidator.

(3) The Official Liquidator shall make payment to the creditors whose claims have been accepted.

(4) The Central Government may, at any stage during settlement of claims, if considers necessary, refer the matter to the Tribunal for necessary orders.