Skip to content

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

Sunrise Textiles Ltd, Surat, filed a winding-up petition before the NCLT on 10 March. The Tribunal admitted it and passed the winding-up order on 25 May. Under the Companies Act, 2013, from which date is the winding up by the Tribunal deemed to have commenced?

Winding up is deemed to commence on 10 March, when the petition was presented. Section 357 ties commencement to presentation of the petition, not to admission, the winding-up order or the liquidator taking charge.

  1. A10 March, the date of presentation of the petitionCorrect
  2. B25 May, the date of the winding-up order
  3. CThe date the liquidator takes charge of the assets
  4. DThe date the petition is admitted after hearing

Explanation

Section 357 provides that winding up by the Tribunal is deemed to commence at the time of presentation of the petition. The order date of 25 May is therefore not the commencement date, although many candidates assume it is.

Did you get it right without looking?

One question tells you little. A timed set on Winding-Up by Tribunal shows your real accuracy, how long you take and where you lose marks.

Practise Winding-Up by TribunalFree diagnostic mock

More Winding-Up by Tribunal questions