PART IV.—Official Liquidators

 

359.Appointment
of Official
Liquidator.
(1) For the purposes of this Act, so far as it relates to the winding up of companies
by the Tribunal, the Central Government may appoint as many Official Liquidators, Joint,
Deputy or Assistant Official Liquidators as it may consider necessary to discharge the
functions of the Official Liquidator.
(2) The liquidators appointed under sub-section (1) shall be whole-time officers of the
Central Government.
(3) The salary and other allowances of the Official Liquidator, Joint Official Liquidator,
Deputy Official Liquidator and Assistant Official Liquidator shall be paid by the Central
Government.
 
 
360.Powers and
functions of
Official
Liquidator.
(1) The Official Liquidator shall exercise such powers and perform such duties as
the Central Government may prescribe.
(2) Without prejudice to the provisions of sub-section (1), the Official Liquidator
may—
(a) exercise all or any of the powers as may be exercised by a Company Liquidator
under the provisions of this Act; and
(b) conduct inquiries or investigations, if directed by the Tribunal or the Central
Government, in respect of matters arising out of winding up proceedings.
 
 
361.Summary
procedure for
liquidation.
(1) Where the company to be wound up under this Chapter, —
(i) has assets of book value not exceeding one crore rupees; and
(ii) belongs to such class or classes of companies as may be prescribed,
the Central Government may order it to be wound up by summary procedure provided under
this Part.
(2) Where an order under sub-section (1) is made, the Central Government shall appoint
the Official Liquidator as the liquidator of the company.
(3) The Official Liquidator shall forthwith take into his custody or control all assets,
effects and actionable claims to which the company is or appears to be entitled.
(4) The Official Liquidator shall, within thirty days of his appointment, submit a report
to the Central Government in such manner and form, as may be prescribed, including a report
whether in his opinion, any fraud has been committed in promotion, formation or management
of the affairs of the company or not.
(5) On receipt of the report under sub-section (4), if the Central Government is satisfied
that any fraud has been committed by the promoters, directors or any other officer of the
company, it may direct further investigation into the affairs of the company and that a report
shall be submitted within such time as may be specified.
(6) After considering the investigation report under sub-section (5), the Central
Government may order that winding up may be proceeded under Part I of this Chapter or
under the provision of this Part.
 
 
362.Sale of assets
and recovery
of debts due
to company.
(1) The Official Liquidator shall expeditiously dispose of all the assets whether
movable or immovable within sixty days of his appointment.
(2) The Official Liquidator shall serve a notice within thirty days of his appointment
calling upon the debtors of the company or the contributories, as the case may be, to deposit
within thirty days with him the amount payable to the company.
(3) Where any debtor does not deposit the amount under sub-section (2), the Central
Government may, on an application made to it by the Official Liquidator, pass such orders as
it thinks fit.
(4) The amount recovered under this section by the Official Liquidator shall be deposited
in accordance with the provisions of section 349.
 
 
363. Settlement of
claims of
creditors by
Official
Liquidator.
(1) The Official Liquidator within thirty days of his appointment shall call upon
the creditors of the company to prove their claims in such manner as may be prescribed,
within thirty days of the receipt of such call.
(2) The Official Liquidator shall prepare a list of claims of creditors in such manner as
may be prescribed and each creditor shall be communicated of the claims accepted or rejected
along with reasons to be recorded in writing.
 
 
364.Appeal by
creditor.
(1) Any creditor aggrieved by the decision of the Official Liquidator under section
363 may file an appeal before the Central Government within thirty days of such decision.
(2) The Central Government may after calling the report from the Official Liquidator
either dismiss the appeal or modify the decision of the Official Liquidator.
(3) The Official Liquidator shall make payment to the creditors whose claims have been
accepted.
(4) The Central Government may, at any stage during settlement of claims, if considers
necessary, refer the matter to the Tribunal for necessary orders.
 
 
365.Order of
dissolution of
company. (1) The Official Liquidator shall, if he is satisfied that the company is finally
wound up, submit a final report to—
(i) the Central Government, in case no reference was made to the Tribunal under
sub-section (4) of section 364; and
(ii) in any other case, the Central Government and the Tribunal.
(2) The Central Government, or as the case may be, the Tribunal on receipt of such
report shall order that the company be dissolved.
(3) Where an order is made under sub-section (2), the Registrar shall strike off the
name of the company from the register of companies and publish a notification to this effect.