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

Sunrise Textiles Ltd, a Surat company, presents a petition before the Tribunal for its own winding up on 10 March. The Tribunal admits the petition on 25 April and passes the winding-up order on 20 May. Under the Companies Act, 2013, from which date is the winding up by the Tribunal deemed to commence?

Winding up commences on 10 March. Under section 357, winding up by the Tribunal is deemed to begin when the petition is presented, not when it is admitted, when the order is passed or when a liquidator takes charge.

  1. A10 March, when the petition was presentedCorrect
  2. B25 April, when the petition was admitted
  3. C20 May, when the winding-up order was passed
  4. DThe date on which the liquidator takes charge of the assets

Explanation

Section 357 provides that winding up by the Tribunal is deemed to commence at the time of presentation of the petition. Admission, the order and the liquidator's appointment all come later and do not fix the commencement date.

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