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

During winding up of Sagar Metals Ltd by the Tribunal, the Company Liquidator reports that the former promoters committed fraud in respect of the company. Which course matches section 282?

The Tribunal orders an investigation under section 210 alongside the winding up. Under section 282(3), on a fraud report it acts without prejudice to winding up, and after the investigation report may give directions under sections 339 to 342 or direct a criminal complaint.

  1. AThe Tribunal must first complete the winding up and only then consider an investigation
  2. BThe Tribunal, without prejudice to the winding up, orders investigation under section 210, and on its report may give directions under sections 339 to 342 or direct a criminal complaintCorrect
  3. CThe Tribunal must refer the matter to the Registrar, who alone may order an investigation
  4. DThe Tribunal may only dissolve the company, with no further directions

Explanation

Section 282(3) provides that where a fraud report is received from the Company Liquidator, the Central Government or any person, the Tribunal shall, without prejudice to the winding up, order an investigation under section 210. On the investigation report it may give directions under sections 339 to 342 or direct the liquidator to file a criminal complaint. Waiting for completion is not required.

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