Section 283: Custody of company’s properties
This section is for ensuring the company's properties are protected and handed over to the Company Liquidator during the winding up process.
The section, clause by clause
What the section says
In plain terms
(1)Where a winding up order has been made or where a provisional liquidator has been appointed, the Company Liquidator or the provisional liquidator, as the case may be, shall, on the order of the Tribunal, forthwith take into his or its custody or control all the property, effects and actionable claims to which the company is or appears to be entitled to and take such steps and measures, as may be necessary, to protect and preserve the properties of the company.
When a winding up order is made or a provisional liquidator is appointed, the Company Liquidator or provisional liquidator must take custody of the company's properties and take steps to protect them on the Tribunal's order.
(2)Notwithstanding anything contained in sub-section (1), all the property and effects of the company shall be deemed to be in the custody of the Tribunal from the date of the order for the winding up of the company.
All the company's property is considered to be in the Tribunal's custody from the date of the winding up order.
(3)On an application by the Company Liquidator or otherwise, the Tribunal may, at any time after the making of a winding up order, require any contributory for the time being on the list of contributories, and any trustee, receiver, banker, agent, officer or other employee of the company, to pay, deliver, surrender or transfer forthwith, or within such time as the Tribunal directs, to the Company Liquidator, any money, property or books and papers in his custody or under his control to which the company is or appears to be entitled.
The Tribunal can require anyone holding the company's money, property, or books to hand them over to the Company Liquidator at any time after the winding up order is made.
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 29 of 2020, s. 46, for sub-section (2) (w.e.f. 21-12-2020).
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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.