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

In a winding up by the Tribunal of Rao Metals Ltd, the Company Liquidator proposes, with Tribunal sanction, to compromise a debt owed by a contributory. A dissenting creditor objects to the liquidator's proposed exercise of power. Which course is open to the creditor under Section 343?

Under Section 343(3), any creditor or contributory may apply to the Tribunal in the prescribed manner regarding an exercise or proposed exercise of the liquidator's powers. The Tribunal gives the applicant and liquidator a reasonable opportunity and then passes such orders as it thinks fit.

  1. ANo remedy exists once the Tribunal has sanctioned
  2. BApply to the Central Government for review of the liquidator's power
  3. CApply to the Tribunal in the prescribed manner, and the Tribunal must give a reasonable opportunity to the applicant and liquidator and then pass such orders as it thinks fitCorrect
  4. DFile a suit in a civil court for an injunction against the liquidator

Explanation

Section 343(3) allows any creditor or contributory to apply to the Tribunal in the prescribed manner about an exercise or proposed exercise of the liquidator's powers. The Tribunal hears both and passes suitable orders. The Central Government has no role here.

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