Section 343: Company Liquidator to exercise certain powers subject to sanction
This section is for outlining the powers of the Company Liquidator that require sanction from the Tribunal when a company is being wound up.
The section, clause by clause
What the section says
In plain terms
(1)The Company Liquidator may, with the sanction of the Tribunal, when the company is being wound up by the Tribunal,—
(1)(i)pay any class of creditors in full;
(1)(ii)make any compromise or arrangement with creditors or persons claiming to be creditors, or having or alleging themselves to have any claim, present or future, certain or contingent, against the company, or whereby the company may be rendered liable; or
(1)(iii)compromise any call or liability to call, debt, and liability capable of resulting in a debt, and any claim, present or future, certain or contingent, ascertained or sounding only in damages, subsisting or alleged to subsist between the company and a contributory or alleged contributory or other debtor or person apprehending liability to the company, and all questions in any way relating to or affecting the assets or liabilities or the winding up of the company, on such terms as may be agreed, and take any security for the discharge of any such call, debt, liability or claim, and give a complete discharge in respect thereof.]
(2)Notwithstanding anything contained in sub-section (1), in the case of a winding up by the Tribunal, the Central Government may make rules to provide that the Company Liquidator may, under such circumstances, if any, and subject to such conditions, restrictions and limitations, if any, as may be prescribed, exercise any of the powers referred to in sub-clause (ii) or sub-clause (iii) of clause (b) of sub-section (1) without the sanction of the Tribunal.
The Central Government may make rules allowing the Company Liquidator to exercise certain powers without the Tribunal's sanction, under prescribed circumstances and conditions.
(3)Any creditor or contributory may apply in the manner prescribed to the Tribunal with respect to any exercise or proposed exercise of powers by the Company Liquidator under this section, and the Tribunal shall after giving a reasonable opportunity to such applicant and the Company Liquidator, pass such orders as it may think fit.
A creditor or contributory can apply to the Tribunal regarding the Company Liquidator's exercise of powers under this section, and the Tribunal will pass orders after hearing the applicant and the Company Liquidator.
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. Sub-sections (2), (3) and (4) omitted by Act 31 of 2016, s. 255 and the Eleventh Schedule (w.e.f. 15-11-2016).
- 2. Sub-section (6) omitted by Act 29 of 2020, s. 48 (w.e.f. 21-12-2020).
- 3. Subs. by Act 31 of 2016, s. 255 and the Eleventh Schedule, for sub-section (1) (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.