Insolvency and Bankruptcy - Law and Practice · Winding-Up by Tribunal

Commencement of Winding Up by Tribunal under Section 357

Updated 11 October 2026 · Fact-checked

Under Section 357 of the Companies Act, 2013, winding up by the Tribunal is deemed to commence at the time of presentation of the winding up petition, not when the winding up order is passed. To solve a question, find the petition date and treat it as the commencement date.

Understand Commencement of Winding Up by Tribunal

A winding up by the Tribunal is a court-style process. A petition is filed, the Tribunal hears it, and later it may pass a winding up order. These events happen on different dates, sometimes months apart. The law needs one fixed date from which the winding up counts.

Section 357 gives that date. It says the winding up of a company by the Tribunal under the Act shall be deemed to commence at the time of the presentation of the petition for the winding up. The word deemed means the law treats the winding up as started from that moment, even though the order comes later.

The section uses the words "at the time", so the moment of presentation matters, not only the day. The order date is not the commencement date. The order only confirms that the winding up goes ahead, and the commencement still relates back to the petition.

The section was substituted by Act 31 of 2016 (the Eleventh Schedule), with effect from 15 November 2016. Older commentary may link the date to the winding up order. For your answers, use the present text.

The date matters because it works as a cut-off. Provisions in the winding up chapter, such as those on avoidance of transfers and on stay of suits, use this date as their reference point. Study those topics next to see the effect in practice. In an answer, always name the date first and then apply the consequence.

Key rules to remember

Rule of commencement (Section 357): Date of commencement of winding up by Tribunal = time of presentation of the winding up petition; Applies to winding up by the Tribunal under the Companies Act, 2013. Section 357 was substituted by Act 31 of 2016, w.e.f. 15-11-2016.
What it is not: Commencement date ≠ date of winding up order; The order is passed later. The commencement still relates back to the petition.
Nature of the date: Commencement = deemed date (a legal fiction); The law treats winding up as begun at the petition, even though nothing has been ordered yet.

How to solve Commencement of Winding Up by Tribunal questions

Use this method for any case-based question on when winding up by the Tribunal begins and why it matters.

1Confirm the winding up is by the Tribunal under the Companies Act, 2013. Section 357 does not cover other modes.
2Find the date and time the petition was presented to the Tribunal. Ignore dates of filing drafts, notices, hearings and the order.
3State the rule: Section 357 deems winding up to commence at the time of presentation of the petition.
4Mark the commencement date on a short timeline: petition, hearing, order.
5Apply the question's issue, such as a transfer, payment or suit, against that date and say whether it falls before or after.
6Conclude in one clear line giving the commencement date and its effect on the facts.

Quickest way: Petition date is the start date

When to use it: Use when time is short and the question asks only for the date of commencement or its identification from facts.

Underline every date in the facts.
Pick the date the petition was presented to the Tribunal.
Write: deemed to commence on that date under Section 357.
Add one line that the order date is not the commencement date.

Common mistakes in Commencement of Winding Up by Tribunal

Treating the date of the winding up order as the commencement date.
The order feels like the real start of the winding up, and older commentary linked the date to the order.
Fix: Remember that Section 357 fixes commencement at presentation of the petition. The order comes later.
Using the date the company's members passed a resolution or the date of a creditor's notice.
Students mix Tribunal winding up with voluntary winding up or with pre-petition demands.
Fix: Check the mode first. Section 357 is only for winding up by the Tribunal.
Using the date of the first hearing or admission of the petition.
Students think the Tribunal must act before the process counts as begun.
Fix: The section refers to presentation of the petition, so the hearing date is irrelevant.
Saying commencement is the date of filing a draft or advance copy.
Filing and presentation are used loosely in everyday language.
Fix: Use the date the petition was actually presented to the Tribunal, as the facts state.
Quoting a wrong or invented section number, or citing the repealed position without noting the change.
Students memorise from old notes.
Fix: Quote Section 357, substituted by Act 31 of 2016 w.e.f. 15-11-2016, and use it for current law.

Worked examples

Example 1

A creditor presents a petition for winding up of Sagar Textiles Limited before the Tribunal on 10 March. The Tribunal hears it on 5 June and passes a winding up order on 20 August. State the date on which the winding up is deemed to commence.

Show the solution

Mode: winding up by the Tribunal under the Companies Act, 2013, so Section 357 applies.
Rule: winding up is deemed to commence at the time of presentation of the petition.
Facts: the petition was presented on 10 March. The hearing (5 June) and the order (20 August) are later events.
Apply: the commencement date is 10 March, not 20 August.

Answer: The winding up of Sagar Textiles Limited is deemed to commence on 10 March, the date of presentation of the petition, under Section 357.

Example 2

Kaveri Foods Limited has a winding up petition presented against it at 11:30 am on 2 April. The company sold a plot of land to a related party on 15 April. The Tribunal orders winding up on 30 July. A student argues that the sale on 15 April was before the order, so winding up had not begun. Evaluate the argument on the question of commencement.

Show the solution

Rule: under Section 357, winding up by the Tribunal is deemed to commence at the time of presentation of the petition.
Facts: the petition was presented on 2 April. The order is dated 30 July.
The commencement date is therefore 2 April.
The sale on 15 April is after that date, so it falls after commencement of winding up.
The student wrongly used the order date. The order date does not decide commencement.

Answer: The argument fails. Winding up is deemed to commence on 2 April, when the petition was presented, so the sale on 15 April took place after commencement. Whether the sale is void is decided under the winding up provisions on transfers, which use this date as the reference point.

Exam tips

Begin the answer by quoting the rule of Section 357 in one sentence. It is short enough to write almost verbatim.
Write the commencement date explicitly and label the other dates as petition, hearing and order on a small timeline.
Always add the contrast line: commencement is the petition date, not the order date.
Where the facts mention a voluntary resolution or an IBC filing, state that Section 357 applies only to winding up by the Tribunal under the Companies Act, 2013.
Link the date to its use. Mention that provisions on avoidance of transfers and stay of suits refer to it.

Practice questions from Winding-Up by Tribunal

Commencement of Winding Up by Tribunal in other exams

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

Commencement of Winding Up by Tribunal: frequently asked questions

When does winding up by Tribunal commence under the Companies Act, 2013?

It is deemed to commence at the time of presentation of the petition for winding up. This is stated in Section 357. The order date does not decide commencement.

Is the commencement date the same as the date of the winding up order?

No. The order is passed after the petition is heard, often much later. Section 357 fixes commencement at presentation of the petition.

Why does the commencement date matter?

It is the cut-off date from which the winding up counts. Other provisions in the winding up chapter, such as those on transfers made after commencement, are read with this date. Always fix it first in a case-based answer.

Has Section 357 been amended?

Yes. It was substituted by Act 31 of 2016 with effect from 15 November 2016. Use the substituted text for current law.