Winding up of Company
Who Can Apply to Court, For Winding up Petition ? ( Sec 439)
Following persons can apply to the court, for petition for winding up:
- The company itself
- The creditor
- Any Contributory
- Any person authorized by central government, in case of oppression or mismanagement (397)
What Orders, The Court May Pass? (Sec 443)
The court may pass any one of the following orders on hearing the winding up petition.
- Dismiss it, with or without costs
- Make any interim order, as it thinks fit, or
- Pass an order for winding up of the company with or without costs.
Consequences of court passing an order for winding up:
If the court is satisfied, that sufficient reasons exist in the petition for winding up, then it will pass a winding up order. Once the winding up order is passed, following consequences follow
- Court will send notice to an official liquidator, to take change of the company. He shall carry out the process of winding up, ( sec. 444)
- The winding up order, shall be applicable on all the creditors and contributories, whether they have filed the winding up petition or not.
- The official liquidator is appointed by central Government ( sec. 448)
- The company shall relevant particulars, relating to, assets , cash in hand, bank balance, liabilities, particulars of creditors etc, to the official liquidator. ( sec. 454)
- The official liquidator shall within six months, from the date of winding up order, submit a preliminary report to the court regarding:
- Particulars of Capital
- Cash and negotiable securities
- Movable and immovable properties
- Unpaid calls, and
- An opinion, whether further inquiry is required or not ( 455)
The Central Govt. shall keep a cognizance over the functioning of official liquidator, and may require him to answer any inquiry.(463)
Where, the court has passed a winding up order, it may stay the proceedings of winding up , on an application filed by official liquidator, or creditor or any contributory. (466)
Dissolution of company (481)
Finally the court will order for dissolution of the company, when:
- the affairs of the company are completely wound up, or
- the official liquidator is unable to carry on the winding up procedure for want of funds.
An appeal from the decision of court, will lie before that court, before whom, appeals lie from any order or decision of the former court in cases within it's ordinary jurisdiction.