Section 279: Stay of suits, etc., on winding up order
This section is for stopping or restricting lawsuits and other legal proceedings against a company when a winding up order has been made or a provisional liquidator appointed.
The section, clause by clause
What the section says
In plain terms
(1)When a winding up order has been passed or a provisional liquidator has been appointed, no suit or other legal proceeding shall be commenced, or if pending at the date of the winding up order, shall be proceeded with, by or against the company, except with the leave of the Tribunal and subject to such terms as the Tribunal may impose:
When a winding up order has been passed or a provisional liquidator has been appointed, no suit or other legal proceeding can be started or continued by or against the company without the Tribunal's leave, which must be applied for within the Tribunal disposing of it within sixty days.
provisoProvided that any application to the Tribunal seeking leave under this section shall be disposed of by the Tribunal within sixty days.
(2)Nothing in sub-section (1) shall apply to any proceeding pending in appeal before the Supreme Court or a High Court.
This rule does not apply to any proceeding already being appealed in the Supreme Court or a High Court.
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 280 (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.