Companies Act, 1956
Sec 464 - Appointment and composition of committee of inspection.
(a) The Court may, at the time of making an order for the winding up of a company or at any time thereafter, direct that there shall be appointed a committee of inspection to act with the liquidator.
(b) Where a direction is given by the Court as aforesaid, the liquidator shall, within two months from the date of such direction, convene a meeting of the creditors of the company (as ascertained from its books and documents) for the purpose of determining who are to be members of the committee ;
(2) The liquidator shall, within fourteen days from the date of the creditors meeting or such further time as the Court in its discretion may grant for the purpose; convene a meeting of the contributories to consider the decision of the creditors' meeting with respect to the membership of the committee ; and it shall be open to the meeting of the contributories to accept the decision of the creditors' meeting with or without modifications or to reject it.
(3) Except in the case where the meeting of the contributories accepts the decision of the creditors' meeting in its entirety, it shall be the duty of the liquidator to apply to the Court for directions as to what the composition of the committee shall be, and who shall be members thereof.