At some point of your time thanks to several reasons one has got to close his business which stage is understood as completing of a corporation . It is the last stage of company during which its existence for past several years is dissolved and everyone its assets are wont to pay off the creditors, shareholders and other liabilities.
Chapter XX of the businesses Act, 2013 regulates the winding-up of companies in India.
As per section 270 of the businesses Act, 2013 a corporation are often aroused either by a tribunal or by way of voluntary completing.
WINDING UP BY THE TRIBUNAL
Section 271 lays down that a tribunal may order for completing a corporation , if a petition under section 272 is presented to the court, with any of the grounds provided under section 271. The grounds provided therein are:
1. If the company is unable to pay its debt.
2. If the corporate has resolved by special resolution that the corporate be aroused by the Tribunal
3. If the corporate has acted against the interests of the sovereignty and integrity of India, security of the State, friendly relations with foreign states, public order, decency or morality.
4. If the tribunal has ordered the winding up of the company under Chapter XIX, which relates to ‘Revival and Rehabilitation of Sick Companies’.
5. If on an application made by the Registrar or any other person authorised by the Central Government by notification under this Act, the Tribunal is of the opinion that the affairs of the corporate are conducted during a fraudulent manner or the corporate was formed for fraudulent and unlawful purpose or the persons concerned within the formation or management of its affairs are guilty of fraud, misfeasance or misconduct in connection therewith which it’s proper that the corporate be aroused .
6. If the corporate has made a default in filing with the Registrar its financial statements or annual returns for immediately preceding five consecutive financial years;
7. If the tribunal is of the opinion that it is just and equitable that the company should be wound up.
Petition of Winding up
The petition to the Tribunal for the completing of a corporation shall be presented by the corporate , or any creditor or creditors, (including any contingent or prospective creditors), any contributory or contributories, the Registrar, any person authorized by the Central Government or in a case falling under clause (b) of section 271, by the Central Government or a State Government. A copy of the petition made under this section shall even be filed with the Registrar and therefore the Registrar shall, without prejudice to the other provisions, submit his views to the Tribunal within sixty days of receipt of such petition.
Powers of the Tribunal (Section 273)
• On receipt of a petition for winding up under section 272, the Tribunal may pass any of the following orders, namely:
1. Dismiss it, with or without costs;
2. Make any interim order;
3. Appoint a provisional liquidator of the corporate during the pendency of completing petition;
4. Make an order for the completing of the corporate with or without costs; or the other order because it thinks fit.
• The order has to be made within 90 days from the date of presentation of the petition.
• The Tribunal shall direct the company the opposite party before appointing a provisional liquidator and give them opportunity to make their representations and file any objections if any.
• Where a petition is presented on the ground that it is just and equitable that the company should be wound up, the Tribunal may refuse to make an order of completing , if it’s of the opinion that another remedy is out there to the petitioners which they’re acting unreasonably in seeking to possess the corporate wound up instead of pursuing the other remedy.
Directions for Filing Statement of Affairs (Section 274)
Since the powers of the tribunal are discretionary, if it’s satisfies that a clear case exists for completing , the tribunal may direct the corporate which is bound to be wound up, to file its objections along with a statement of affairs within 30 days of order. The tribunal shall also give further period of 30 days in special circumstances.
So if a company doesn’t file the statement of affairs they shall not have the right to oppose the petition and such directors and officers of the company shall be punished u/s 274(4) [imprisonment for a term which may extend to six months or with fine which shall not be less than twenty-five thousand rupees but which may extend to five lakh rupees, or with both.]
I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.
If you are interested in participating in the same, do let me know.
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