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

Nair Steel Ltd has been ordered to be wound up. A creditor, Sundaram Metals, applies to the Tribunal for leave to continue a suit against the company. Within what time must the Tribunal dispose of this leave application under section 279?

The Tribunal must dispose of the leave application within sixty days. The proviso to section 279(1) fixes this period for any application seeking leave to proceed with or commence a suit or legal proceeding against the company after a winding up order or provisional liquidator appointment.

  1. AWithin thirty days
  2. BWithin ninety days
  3. CWithin sixty daysCorrect
  4. DWithin one hundred and eighty days

Explanation

The proviso to section 279(1) requires an application seeking leave to be disposed of by the Tribunal within sixty days. Thirty and ninety days are not stated in the section.

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