Skip to content

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

Kaveri Exports Pvt Ltd is under winding up by the Tribunal. A suit against the company for breach of contract was filed in 2019, well before any winding-up order. A question arises whether the Tribunal can deal with it. Under section 280 of the Companies Act, 2013, which is correct?

The Tribunal can entertain or dispose of the suit. Section 280 covers any suit or proceeding by or against the company whether it was instituted before or after the winding-up order, so the earlier filing in 2019 does not remove it from the Tribunal's jurisdiction.

  1. AThe Tribunal can entertain or dispose of it, whether the suit was instituted before or after the winding-up orderCorrect
  2. BThe Tribunal can deal only with suits instituted after the winding-up order
  3. CThe suit must continue in the original court until it is decided
  4. DThe Tribunal can deal with it only if the company's directors consent

Explanation

Section 280 empowers the Tribunal to entertain or dispose of any suit or proceeding by or against the company, expressly whether instituted before or after the winding-up order. So a 2019 suit is within its jurisdiction. Limiting it to post-order suits contradicts the closing words of the section.

Did you get it right without looking?

One question tells you little. A timed set on Winding-up by Tribunal under the Companies Act, 2013 shows your real accuracy, how long you take and where you lose marks.

Practise Winding-up by Tribunal under the Companies Act, 2013Free diagnostic mock

More Winding-up by Tribunal under the Companies Act, 2013 questions