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

Before a winding up petition against Arvind Components Ltd was presented, a supplier had begun a suit for recovery against it. After the winding up order, the company wants to assert a counterclaim and also raise a question about priorities among its creditors. Under Section 280, which of the following is correct?

The Tribunal's jurisdiction under Section 280 extends to suits, claims and questions of priorities or any other question of law or fact, whether these arose before or after the winding up order. The section contains no timing or law-versus-fact limitation.

  1. AThe Tribunal's jurisdiction covers suits, claims and questions of priorities, whether arising before or after the winding up orderCorrect
  2. BThe Tribunal can decide only questions arising after the winding up order is made
  3. CThe Tribunal can decide questions of fact but not questions of law
  4. DThe Tribunal can decide claims by the company but not claims against it

Explanation

Section 280 gives the Tribunal jurisdiction over any suit or proceeding by or against the company, claims by or against it, and any question of priorities or any other question of law or facts. This applies whether the matter arose before or after the winding up order. The other options add limits the section does not contain.

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