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CS Professional · Insolvency and Bankruptcy - Law and Practice · Winding-Up by Tribunal

Lakshya Metals Pvt Ltd has a branch in Pune, which is in India. A customer has a claim arising from a transaction with the Pune branch. Lakshya is now under winding up by the Tribunal. Where does the claim fall?

The claim falls within the Tribunal's jurisdiction. Section 280 covers any claim by or against the company and expressly includes claims by or against its branches in India, so the Pune branch claim is decided in the winding up, with no monetary threshold.

  1. AOutside the Tribunal's jurisdiction, as branch claims need separate local proceedings
  2. BWithin the Tribunal's jurisdiction, since claims by or against the company include claims by or against its branches in IndiaCorrect
  3. CWithin the Tribunal's jurisdiction only if the claim exceeds the company's paid-up capital
  4. DWithin the jurisdiction of the civil court at Pune alone

Explanation

Section 280(b) covers any claim made by or against the company, expressly including claims by or against its branches in India. No monetary threshold applies. Section 430 also excludes the civil court on matters the Tribunal can determine.

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