This section is for outlining the procedures and penalties related to a company's filing of a statement of affairs when a petition for winding up is filed.
What the section says
In plain terms
(1)Where a petition for winding up is filed before the Tribunal by any person other than the company, the Tribunal shall, if satisfied that a prima facie case for winding up of the company is made out, by an order direct the company to file its objections along with a statement of its affairs within thirty days of the order in such form and in such manner as may be prescribed:
If someone other than the company files a petition for winding up, the Tribunal will order the company to file its objections and a statement of affairs within 30 days, which can be extended by another 30 days in special circumstances.
provisoProvided that the Tribunal may allow a further period of thirty days in a situation of contingency or special circumstances:
provisoProvided further that the Tribunal may direct the petitioner to deposit such security for costs as it may consider reasonable as a precondition to issue directions to the company.
(2)A company, which fails to file the statement of affairs as referred to in sub-section (1), shall forfeit the right to oppose the petition and such directors and officers of the company as found responsible for such non-compliance, shall be liable for punishment under sub-section (4).
A company that fails to file the statement of affairs will lose its right to oppose the petition and its directors and officers may be punished.
(3)The directors and other officers of the company, in respect of which an order for winding up is passed by the Tribunal under clause (d) of
sub-section (1) of section 273, shall, within a period of thirty days of such order, submit, at the cost of the company, the books of account of the company completed and audited up to the date of the order, to such liquidator and in the manner specified by the Tribunal.
After a winding up order, the company's directors and officers must submit the company's audited books of account to the liquidator within 30 days.
(4)If any director or officer of the company contravenes the provisions of this section, the director or the officer of the company who is in default shall be punishable with 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.
Directors or officers who do not comply with this section can be imprisoned for up to 6 months or fined between 25,000 rupees and 5 lakh rupees, or both.
(5)The complaint may be filed in this behalf before the Special Court by Registrar, provisional liquidator, Company Liquidator or any person authorised by the Tribunal.
A complaint about non-compliance can be filed with the Special Court by the Registrar, liquidator, or anyone authorised by the Tribunal.
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.
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.