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

Counsel for a creditor of Modi Steels Ltd argues that, because the Act has commenced, a pre-commencement winding-up order cannot be enforced until the new Chapter's procedure is followed. Under Section 303, the best response is that:

The argument fails. Section 303 says the new Chapter does not affect operation or enforcement of a pre-commencement winding-up order, and an appeal lies before the authority competent before commencement, not automatically before the NCLAT.

  1. AThe argument is correct since the new Chapter overrides earlier orders
  2. BThe argument is correct only if the appeal period has expired
  3. CThe argument fails because the Chapter does not affect operation or enforcement of the order, and any appeal lies before the pre-commencement appellate authorityCorrect
  4. DThe argument fails because winding-up orders are always appealable to the NCLAT

Explanation

Section 303 protects the operation and enforcement of the order and routes appeals to the pre-commencement competent authority. The NCLAT option wrongly assumes the new forum applies, and the first two options contradict the section.

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