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

Himalaya Foods Ltd is in winding up before the Tribunal. A dispute arises about priority between two creditors over the sale proceeds of a factory, and a related question concerns the title to certain machinery. Under section 280 of the Companies Act, 2013, who can decide these?

The Tribunal decides both. Section 280(d) gives it jurisdiction over questions of priorities and any other question of law or fact, including those relating to assets, arising out of or in relation to winding up. Section 430 keeps civil courts out of these matters.

  1. AThe civil court at the factory's location, as title disputes are civil matters
  2. BThe Tribunal, which can decide any question of priorities or any other question of law or fact arising out of or in relation to winding upCorrect
  3. CThe Central Government through a notified officer
  4. DThe Tribunal for priorities only, and a civil court for title to machinery

Explanation

Section 280(d) gives the Tribunal jurisdiction over any question of priorities or any other question whatsoever, of law or facts, including those relating to assets, arising in relation to winding up. Both priority and machinery title therefore lie with the Tribunal. Section 430 also excludes civil courts from such matters.

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