Section 281: Submission of report by Company Liquidator
This section requires the Company Liquidator to submit a report to the Tribunal containing detailed information about the company's assets, liabilities, and other relevant matters, and allows creditors and contributories to inspect and take copies of the report.
The section, clause by clause
What the section says
In plain terms
(1)Where the Tribunal has made a winding up order or appointed a Company Liquidator, such liquidator shall, within sixty days from the order, submit to the Tribunal, a report containing the following particulars, namely:—
The Company Liquidator must submit a report to the Tribunal within 60 days from the order, containing particulars such as the company's assets, capital, liabilities, debts, and other relevant information.
(1)(a)the nature and details of the assets of the company including their location and value, stating separately the cash balance in hand and in the bank, if any, and the negotiable securities, if any, held by the company:
provisoProvided that the valuation of the assets shall be obtained from registered valuers for this purpose;
(1)(b)amount of capital issued, subscribed and paid-up;
(1)(c)the existing and contingent liabilities of the company including names, addresses and occupations of its creditors, stating separately the amount of secured and unsecured debts, and in the case of secured debts, particulars of the securities given, whether by the company or an officer thereof, their value and the dates on which they were given;
(1)(d)the debts due to the company and the names, addresses and occupations of the persons from whom they are due and the amount likely to be realised on account thereof;
(1)(e)guarantees, if any, extended by the company;
(1)(f)list of contributories and dues, if any, payable by them and details of any unpaid call;
(1)(g)details of trade marks and intellectual properties, if any, owned by the company;
(1)(h)details of subsisting contracts, joint ventures and collaborations, if any;
(1)(i)details of holding and subsidiary companies, if any;
(1)(j)details of legal cases filed by or against the company; and
(1)(k)any other information which the Tribunal may direct or the Company Liquidator may consider necessary to include.
(2)The Company Liquidator shall include in his report the manner in which the company was promoted or formed and whether in his opinion any fraud has been committed by any person in its promotion or formation or by any officer of the company in relation to the company since the formation thereof and any other matters which, in his opinion, it is desirable to bring to the notice of the Tribunal.
The report must include the manner in which the company was formed and whether any fraud was committed by its promoters, officers, or others, as well as any other matters the Company Liquidator thinks the Tribunal should know.
(3)The Company Liquidator shall also make a report on the viability of the business of the company or the steps which, in his opinion, are necessary for maximising the value of the assets of the company.
The Company Liquidator must also report on the viability of the company's business or the steps needed to maximise the value of its assets.
(4)The Company Liquidator may also, if he thinks fit, make any further report or reports.
The Company Liquidator may submit additional reports if he thinks it necessary.
(5)Any person describing himself in writing to be a creditor or a contributory of the company shall be entitled by himself or by his agent at all reasonable times to inspect the report submitted in accordance with this section and take copies thereof or extracts therefrom on payment of the prescribed fees.
Creditors or contributories of the company can inspect and take copies of the report at reasonable times, on payment of the prescribed fees.
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.
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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.