Section 362: Sale of assets and recovery of debts due to company
This section is for the sale of a company's assets and recovery of debts owed to it during the liquidation process.
The section, clause by clause
What the section says
In plain terms
(1)The Official Liquidator shall expeditiously dispose of all the assets whether movable or immovable within sixty days of his appointment.
The Official Liquidator must quickly sell all the company's assets, whether movable or immovable, within 60 days of being appointed.
(2)The Official Liquidator shall serve a notice within thirty days of his appointment calling upon the debtors of the company or the contributories, as the case may be, to deposit within thirty days with him the amount payable to the company.
The Official Liquidator must send a notice within 30 days of being appointed, telling the company's debtors to pay what they owe within 30 days.
(3)Where any debtor does not deposit the amount under sub-section (2), the Central Government may, on an application made to it by the Official Liquidator, pass such orders as it thinks fit.
If a debtor does not pay what they owe, the Central Government can make orders it thinks are suitable, if the Official Liquidator asks it to.
(4)The amount recovered under this section by the Official Liquidator shall be deposited in accordance with the provisions of section 349.
The Official Liquidator must deposit any money recovered using this process, following the rules set out.
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.
This section refers to
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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.