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CS Professional · Drafting, Pleadings and Appearances · Applications, Petitions and Appeals under Companies Act, 2013

A High Court passed a winding-up order against Kalyani Textiles Ltd on a date before the Companies Act, 2013 came into force. The Act now applies. Which statement best reflects the effect of Section 303 on that order?

The winding-up order stays fully operative and enforceable. Section 303 provides that nothing in the Chapter affects the operation or enforcement of a court's winding-up order made immediately before the Act commenced, so no re-examination, re-filing or lapse arises.

  1. AThe order is void because the new Chapter replaces all earlier winding-up orders
  2. BThe order's operation and enforcement are not affected by the new ChapterCorrect
  3. CThe order must be re-examined by the Tribunal before it can be enforced
  4. DThe order lapses unless the Official Liquidator re-files it

Explanation

Section 303 states that nothing in the Chapter affects the operation or enforcement of any court's winding-up order made immediately before commencement. The order therefore continues to operate. The suggestion that it must be re-examined or lapses has no basis in the section.

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