Section 275: Company Liquidators and their appointments
This section is for outlining the appointment and roles of Company Liquidators in the winding up of a company by the Tribunal.
The section, clause by clause
What the section says
In plain terms
(1)For the purposes of winding up of a company by the Tribunal, the Tribunal at the time of the passing of the order of winding up, shall appoint an Official Liquidator or a liquidator from the panel maintained under sub-section (2) as the Company Liquidator.
When the Tribunal orders a company to be wound up, it will appoint an Official Liquidator or a liquidator from a panel as the Company Liquidator at the same time.
(2)The provisional liquidator or the Company Liquidator, as the case may, shall be appointed by the Tribunal from amongst the insolvency professionals registered under the Insolvency and Bankruptcy Code, 2016 (31 of 2016);]
(3)Where a provisional liquidator is appointed by the Tribunal, the Tribunal may limit and restrict his powers by the order appointing him or it or by a subsequent order, but otherwise he shall have the same powers as a liquidator. 2*
A provisional liquidator appointed by the Tribunal will have the same powers as a liquidator, unless the Tribunal limits or restricts them when making the appointment or later.
(3)*
(5)The terms and conditions of appointment of a provisional liquidator or Company Liquidator and the fee payable to him or it shall be specified by the Tribunal on the basis of task required to be performed, experience, qualification of such liquidator and size of the company.
The Tribunal will decide the terms and conditions of a provisional liquidator or Company Liquidator's appointment, including their fee, based on the task, their experience, qualification, and the company's size.
(6)On appointment as provisional liquidator or Company Liquidator, as the case may be, such liquidator shall file a declaration within seven days from the date of appointment in the prescribed form disclosing conflict of interest or lack of independence in respect of his appointment, if any, with the Tribunal and such obligation shall continue throughout the term of his appointment.
A provisional liquidator or Company Liquidator must file a declaration within 7 days of their appointment, disclosing any conflict of interest or lack of independence, and they must continue to disclose this information throughout their appointment.
(7)While passing a winding up order, the Tribunal may appoint a provisional liquidator, if any, appointed under clause (c) of sub-section (1) of section 273, as the Company Liquidator for the conduct of the proceedings for the winding up of the company.
The Tribunal may appoint a provisional liquidator already in place as the Company Liquidator when it orders a company to be wound up.
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 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.