Corporate Restructuring, Valuation and Insolvency · Winding-up by Tribunal under the Companies Act, 2013

Statement of Affairs, Reports and Realisation of Assets in Winding Up

Updated 11 October 2026 · Fact-checked

After a winding-up order, the Company Liquidator takes custody of all property, reports to the Tribunal within sixty days, and works with a winding up committee. The Tribunal settles the list of contributories and directs sale of assets. Sale proceeds then pay the liabilities of the company.

Understand Statement of Affairs, Reports and Realisation of Assets

Once the Tribunal orders winding up, the company's affairs pass into the hands of the Company Liquidator. The first job is to find out what the company owns and owes. This is why the law asks for a detailed report, a list of creditors and a list of contributories.

The property of the company is protected at once. Under section 283, the Company Liquidator takes into custody or control all property, effects and actionable claims of the company, on the order of the Tribunal. From the date of the winding-up order, all property and effects are also deemed to be in the custody of the Tribunal. The Tribunal can order contributories, bankers, agents, officers or employees to hand over money, property or books and papers.

The liquidator then reports. Under section 281, within sixty days from the order, the liquidator submits a report to the Tribunal. It covers assets (valued by registered valuers), capital, liabilities, debts due, guarantees, contributories, intellectual property, contracts, group companies and legal cases. It also states how the company was promoted, whether any fraud appears, and whether the business is viable or how asset value can be maximised.

On this report, the Tribunal under section 282 fixes a time limit for completing the proceedings and dissolving the company. It may order sale of the company as a going concern, or of its assets or part of them, and may appoint a sale committee. If fraud is reported, it orders investigation under section 210. It may also direct steps to protect or enhance asset value.

Two lists decide who gets paid and who must pay. Creditors prove claims (section 363). Contributories, meaning members who may have to contribute, are listed by the Tribunal (section 285). A winding up committee (section 277) assists and monitors the liquidator, and the liquidator reports to the Tribunal monthly.

Key rules to remember

Intimation of order (s.277(1)): Tribunal order → intimation to liquidator and Registrar within 7 days; Registrar endorses records, notifies in the Official Gazette, and informs stock exchanges if the company is listed.
Winding up committee (s.277(4)): Application within 3 weeks of order; members: Official Liquidator + nominee of secured creditors + professional nominated by Tribunal; Company Liquidator is convener. Monthly report with signed minutes goes to the Tribunal until the final report.
Liquidator's report (s.281(1)): Report to Tribunal within 60 days from the order; Asset valuation must be obtained from registered valuers. Creditors and contributories may inspect the report and take copies on paying the prescribed fee.
Creditors' claims (s.363): Official Liquidator calls for claims within 30 days of appointment; creditors prove within 30 days of receiving the call; Each creditor is told which claims are accepted or rejected, with written reasons.
Contributory liability limits (s.285(3)): Ceased member ≥ 1 year before winding up → not liable; no liability for debts contracted after exit; present members first; shares: limited to unpaid amount; guarantee: limited to amount undertaken; A guarantee company with share capital is also liable for unpaid share amounts.
Custody (s.283): From winding-up order, all property and effects deemed in custody of the Tribunal; The liquidator takes physical custody or control on the Tribunal's order.

How to solve Statement of Affairs, Reports and Realisation of Assets questions

Use this order for any case question. It follows the winding-up timeline, so you will not miss a step.

1Fix the starting point: note the date of the winding-up order or of appointing the provisional liquidator.
2Identify who must act (Tribunal, Company Liquidator, Official Liquidator, Registrar) and by when.
3Secure the assets: apply section 283 on custody and the Tribunal's power to compel handover of money, property and books.
4Apply section 281 on the report: contents, 60-day limit, registered valuer, fraud and viability.
5Apply section 282: time limit, sale as a going concern or of assets, sale committee, investigation of fraud.
6Deal with claims and contributories: section 363 for creditors, section 285 for the list and its limits.
7Check the winding up committee under section 277 and its monthly reporting.
8Conclude clearly with the section number and the practical action the liquidator or Tribunal takes.

Quickest way: Time-line recall: 7 – 21 – 60

When to use it: Use for short-note questions or when a case asks who does what and by when.

7 days: Tribunal sends intimation of the order to liquidator and Registrar.
3 weeks: liquidator applies for a winding up committee.
60 days: liquidator files the report under section 281.
Then: Tribunal fixes a time limit and directs sale under section 282.
Parallel: claims (30 + 30 days) and the list of contributories (section 285).
Write each step with its section number and the authority responsible.

Common mistakes in Statement of Affairs, Reports and Realisation of Assets

Giving a 30-day deadline for the liquidator's report instead of 60 days.
The 30-day periods in section 363 get mixed up with section 281.
Fix: Remember: report 60 days; claims calls 30 + 30 days.
Saying the Tribunal sends intimation within three weeks.
Confusion between the 7-day intimation and the 3-week committee application.
Fix: Seven days is the Tribunal's intimation; three weeks is the liquidator's application for the committee.
Making a past member liable without conditions.
Students remember only that past members can be contributories.
Fix: Check the section 285(3) tests: one year gap, debts after exit, present members unable to pay, and the unpaid amount cap.
Omitting the registered valuer requirement for asset values.
Students focus on the list of items in the report.
Fix: State that valuation of assets must be obtained from registered valuers under the proviso to section 281(1).
Saying the liquidator alone decides how assets are sold.
The Tribunal's directing role is overlooked.
Fix: Under section 282 the Tribunal orders sale, may appoint a sale committee and can revise the time limit.
Assuming the winding-up order never ends employment.
Students miss section 277(3).
Fix: The order is deemed notice of discharge to officers, employees and workmen, except where the business is continued.

Worked examples

Example 1

Moonrise Textiles Ltd is wound up by the Tribunal on 1 March. The Company Liquidator wants to know the deadlines for the committee application and the report to the Tribunal. Advise him, and say what the report must cover about the company's assets.

Show the solution

Provision: section 277(4) requires an application for a winding up committee within three weeks from the date of the order, so by 22 March.
The committee has the Official Liquidator, a nominee of secured creditors and a professional nominated by the Tribunal. The liquidator convenes it.
Provision: section 281(1) requires a report within sixty days from the order, so by 30 April (31 days in March after 1 March gives 30 March for 30 days, plus 30 days in April).
Assets: report the nature, details, location and value, with cash in hand and bank and negotiable securities shown separately.
Valuation of assets must be obtained from registered valuers.
Also cover capital, liabilities, debts due, guarantees, contributories, intellectual property, contracts, group companies and legal cases, plus promotion, fraud and viability.

Answer: Application for the committee by 22 March; report by 30 April, with assets valued by registered valuers and separate cash and securities details.

Example 2

Anil left Delta Ltd, a company limited by shares, as a member 8 months before the winding up began. Meera left 2 years before. Present members can pay all dues. Who can be placed on the list of contributories and for what amount?

Show the solution

Provision: section 285(3) includes every person who is or has been a member, subject to conditions.
Anil: he ceased to be a member for less than one year before commencement, so condition (a) does not protect him.
Condition (c) still applies: he is liable only if the Tribunal finds the present members unable to satisfy the contributions.
Present members can pay, so Anil is not liable.
Meera: she ceased to be a member for one year or more before commencement, so she is not liable under condition (a).
If Anil were liable, condition (d) limits him to the amount unpaid on his shares, and (b) excludes debts contracted after he left.

Answer: Neither Anil nor Meera can be made to contribute: Meera is protected by the one-year rule and Anil by the rule that present members must be unable to pay first.

Exam tips

Write the section number beside every deadline; examiners reward accurate provisions.
Structure answers as provision, application to the facts, conclusion.
For short notes on the liquidator's report, list contents in groups: assets, liabilities, persons, legal matters, opinion on fraud and viability.
In contributory questions, test each condition of section 285(3) one by one.
Mention the winding up committee and its monthly report when asked about monitoring of liquidation.

Practice questions from Winding-up by Tribunal under the Companies Act, 2013

Statement of Affairs, Reports and Realisation of Assets in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Statement of Affairs, Reports and Realisation of Assets: frequently asked questions

Is there a section called statement of affairs in the text I should cite?

The provisions supplied here describe the committee examining the statement of affairs (section 277(5)(ii)). The liquidator's detailed report on assets and liabilities is under section 281. Cite these sections and avoid inventing others.

Within how many days must the liquidator file the report?

Within sixty days from the winding-up order or appointment, the liquidator submits the report under section 281(1). He may make further reports if he thinks fit.

Who can inspect the liquidator's report?

Any person describing himself in writing as a creditor or contributory can inspect it, personally or through an agent, at reasonable times. He can take copies or extracts on paying the prescribed fees.

How are assets realised in winding up by Tribunal?

The liquidator takes custody of the assets. The Tribunal may then order sale of the company as a going concern or sale of assets or part of them under section 282, with a sale committee if it thinks fit. The assets are applied to discharge the company's liabilities.