Skip to content

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

A winding up order was passed against Ganga Steels Ltd. A suit by the company was pending in appeal before a High Court at that date. The appellant's counsel asks whether Tribunal leave is needed to proceed with the appeal. What is the correct position?

Leave of the Tribunal is not needed. The stay on suits and legal proceedings after a winding up order does not apply to proceedings pending in appeal before the Supreme Court or a High Court, so the appeal may continue.

  1. ALeave of the Tribunal is required, as the stay applies to all appeals
  2. BLeave is required only if the appeal is by the company, not against it
  3. CLeave is not required, as proceedings pending in appeal before the Supreme Court or a High Court are excluded from the stayCorrect
  4. DLeave is required from the liquidator instead of the Tribunal

Explanation

The stay on suits does not apply to any proceeding pending in appeal before the Supreme Court or a High Court. So the appeal can proceed without Tribunal leave, whoever is the appellant.

Did you get it right without looking?

One question tells you little. A timed set on Winding-Up by Tribunal shows your real accuracy, how long you take and where you lose marks.

Practise Winding-Up by TribunalFree diagnostic mock

More Winding-Up by Tribunal questions