Section 273: Powers of Tribunal
This section is for outlining the powers of the Tribunal when dealing with a petition for winding up a company.
The section, clause by clause
What the section says
In plain terms
(1)The Tribunal may, on receipt of a petition for winding up under section 272 pass any of the following orders, namely:—
The Tribunal can make various orders when it receives a petition for winding up, including dismissing the petition, making an interim order, appointing a provisional liquidator, making a winding up order, or any other order it thinks fit, all within 90 days of the petition being presented.
(1)(a)dismiss it, with or without costs;
(1)(b)make any interim order as it thinks fit;
(1)(c)appoint a provisional liquidator of the company till the making of a winding up order;
(1)(d)make an order for the winding up of the company with or without costs; or
(1)(e)any other order as it thinks fit:
provisoProvided that an order under this sub-section shall be made within ninety days from the date of presentation of the petition: Provided further that before appointing a provisional liquidator under clause (c), the Tribunal shall give notice to the company and afford a reasonable opportunity to it to make its representations, if any, unless for special reasons to be recorded in writing, the Tribunal thinks fit to dispense with such notice:
provisoProvided also that the Tribunal shall not refuse to make a winding up order on the ground only that the assets of the company have been mortgaged for an amount equal to or in excess of those assets, or that the company has no assets.
(2)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 winding up, if it is of the opinion that some other remedy is available to the petitioners and that they are acting unreasonably in seeking to have the company wound up instead of pursuing the other remedy.
If a petition is made to wind up a company because it is just and equitable to do so, the Tribunal can refuse the order if it believes the petitioners have another remedy available and are unreasonably seeking to wind up the company instead of using that remedy.
The right-hand column is written from the section text, not quoted from it, and it has no legal force. Where the two differ, the left-hand column is the law.
Amendment notes
- 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for section 272 (w.e.f. 15-11-2016).
- 2. Subs. by Act 22 of 2019, s. 37, for “or clause (e) of that sub-section” (w.e.f. 15-8-2019).
- 1. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for sub-section (2) (w.e.f. 15-11-2016).
- 2. Sub-section (4) omitted by s. 255 and the Eleventh Schedule, ibid. (w.e.f. 15-11-2016).
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Reproduced from the official India Code print for reference. Check the current text on India Code before you rely on it, and read the section alongside its Rules. Nothing here is legal advice.