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CS Executive · Jurisprudence, Interpretation and General Laws · Law relating to Limitation

Kiran Traders is a creditor of Orbit Ltd, which is being wound up by the court. For limitation purposes, Kiran's claim is treated as instituted when:

The claim is treated as instituted when the claimant first sends in the claim to the official liquidator. This rule in Section 3(2)(a)(iii) applies to claims against a company being wound up by the court, regardless of when the winding-up order or any later admission occurs.

  1. Athe winding-up order is passed
  2. BKiran first sends in the claim to the official liquidatorCorrect
  3. Cthe company court admits the claim after adjudication
  4. DKiran files a plaint in the civil court

Explanation

Section 3(2)(a)(iii) states that for a claim against a company being wound up by the court, the suit is instituted when the claimant first sends in his claim to the official liquidator. The date of the winding-up order or later admission does not matter.

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