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CS Professional · Corporate Restructuring, Valuation and Insolvency · Winding-up by Tribunal under the Companies Act, 2013

Hari Steels Ltd is the respondent in a winding up petition filed by a creditor. The Tribunal is satisfied that a prima facie case exists and directs the company to file its objections with a statement of affairs within thirty days. Due to a sudden fire at its registered office, the company needs more time. What is the maximum additional time the Tribunal may allow?

The Tribunal may allow a further thirty days. Section 274(1) permits this extra period in contingency or special circumstances, on top of the original thirty days for filing objections and the statement of affairs, making sixty days in total at most.

  1. AFifteen days
  2. BThirty daysCorrect
  3. CSixty days
  4. DNinety days

Explanation

Section 274(1) first proviso lets the Tribunal allow a further period of thirty days in a situation of contingency or special circumstances. A fire is such a contingency, so the total can reach sixty days, but the extension itself is only thirty days. Sixty days confuses the total with the extension.

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