Companies Act Section 370 — Continuation of pending legal proceedings

CHAPTER XXI

Commercial / Corporate

Summary

All suits and other legal proceedings that were started by or against the company, or any public officer or member of the company, and are still pending at the time the company registers under this Part, may be continued in the same way as if the registration had never happened.

However, execution of any decree or order from such a suit or proceeding cannot be enforced against the personal property or person of any individual member of the company. Instead, if the company's property is not enough to satisfy the decree or order, an order may be obtained to wind up the company in accordance with the provisions of this Act or the Insolvency and Bankruptcy Code, 2016.

Official Text

All suits and other legal proceedings taken by or against the company, or any public officer or member thereof, which are pending at the time of the registration of a company in pursuance of this Part, may be continued in the same manner as if the registration had not taken place:

Provided that execution shall not issue against the property or persons of any individual member of the company on any decree or order obtained in any such suit or proceeding; but, in the event of the property of the company being insufficient to satisfy the decree or order, an order may be obtained for winding up the company 2[in accordance with the provisions of this Act or of the Insolvency and Bankruptcy Code, 2016 (31 of 2016)].