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CS Professional · Drafting, Pleadings and Appearances · Art of Advocacy and Appearances

In examination proceedings under section 300 against a former promoter, the Company Liquidator wishes to employ legal assistance for taking part in the examination. Mr. Das, the promoter, applies to be exculpated from the charges. Which statement is correct?

The Liquidator needs special authorisation from the Tribunal, and may employ only such legal assistance as it sanctions. When Das applies to be exculpated, the Liquidator must appear at the hearing and bring any relevant matters to the Tribunal's attention.

  1. AThe Liquidator may employ legal assistance on his own, and has no duty when Das applies for exculpation
  2. BThe Liquidator may employ legal assistance only if specially authorised by the Tribunal, and the assistance must be as sanctioned by it; on Das's application the Liquidator must appear and draw the Tribunal's attention to relevant mattersCorrect
  3. CThe Liquidator may not employ legal assistance, but must remain absent when Das applies
  4. DThe Liquidator's legal assistance is at the promoter's cost, and the Liquidator must support the application

Explanation

Section 300(2) lets the Liquidator employ legal assistance only if specially authorised by the Tribunal, and as sanctioned by it. Section 300(5) makes it his duty to appear at the hearing of an exculpation application and call attention to relevant matters. The other options reverse these duties or shift costs wrongly.

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