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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulatory Approvals of Scheme

Bharat Polymers Ltd's arrangement was sanctioned, but the Tribunal is satisfied that it cannot be implemented satisfactorily even with modifications, and the company cannot pay its debts as per the scheme. What may the Tribunal do under the Companies Act, 2013?

The Tribunal may order winding up of the company, and that order is deemed to be made under section 273. This applies when the sanctioned scheme cannot be implemented satisfactorily, with or without modifications, and the company is unable to pay its debts as per the scheme.

  1. AOrder winding up of the company, deemed to be an order under section 273Correct
  2. BOnly extend the scheme period indefinitely
  3. CDirect the Registrar to strike off the company at once
  4. DOrder the promoters to buy out all creditors

Explanation

Under section 231(2), if the scheme cannot be implemented satisfactorily with or without modifications and the company cannot pay its debts as per the scheme, the Tribunal may order winding up. That order is deemed made under section 273. Both conditions must be met.

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