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

A Registrar of Companies wishes to present a petition for winding up of Deccan Forge Ltd on a permitted ground under section 271. Which sequence correctly states the statutory precondition?

The Registrar must first get the Central Government's previous sanction, and the Government can grant it only after giving the company a reasonable opportunity to make representations. These conditions come from the provisos to section 272(3); no Tribunal or company consent is required beforehand.

  1. AObtain previous sanction of the Central Government, which may be given only after the company has had a reasonable opportunity to make representationsCorrect
  2. BGive notice to creditors, then file directly with the Tribunal
  3. CObtain the sanction of the Tribunal, then hear the company
  4. DObtain the company's consent by ordinary resolution before filing

Explanation

Under the provisos to section 272(3), the Registrar needs the Central Government's previous sanction, and the Government cannot grant it unless the company has been given a reasonable opportunity of making representations. The other sequences invent steps not in the section.

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