Powers and duties of Company Liquidator

(1)

Subject to directions by the Tribunal , if any, in this regard, the Company Liquidator, in a winding up of a company by the Tribunal, shall have the power—

(a)

to carry on the business of the company so far as may be necessary for the beneficial winding up of the company;

(b)

to do all acts and to execute, in the name and on behalf of the company, all deeds, receipts and other documents, and for that purpose, to use, when necessary, the company’s seal;

(c)

to sell the immovable and movable property and actionable claims of the company by public auction or private contract, with power to transfer such property to any person or body corporate, or to sell the same in parcels;

(d)

to sell the whole of the undertaking of the company as a going concern;

(e)

to raise any money required on the security of the assets of the company;

(f)

to institute or defend any suit, prosecution or other legal proceeding, civil or criminal, in the name and on behalf of the company;

(g)

to invite and settle claim of creditors, employees or any other claimant and distribute sale proceeds in accordance with priorities established under this Act;

(h)

to inspect the records and returns of the company on the files of the Registrar or any other authority;

(i)

to prove rank and claim in the insolvency of any contributory for any balance against his estate, and to receive dividends in the insolvency, in respect of that balance, as a separate debt due from the insolvent, and rateably with the other separate creditors;

(j)

to draw, accept, make and endorse any negotiable instruments including cheque, bill of exchange, hundi or promissory note in the name and on behalf of the company, with the same effect with respect to the liability of the company as if such instruments had been drawn, accepted, made or endorsed by or on behalf of the company in the course of its business;

(k)

to take out, in his official name, letters of administration to any deceased contributory, and to do in his official name any other act necessary for obtaining payment of any money due from a contributory or his estate which cannot be conveniently done in the name of the company, and in all such cases, the money due shall, for the purpose of enabling the Company Liquidator to take out the letters of administration or recover the money, be deemed to be due to the Company Liquidator himself;

(l)

to obtain any professional assistance from any person or appoint any professional, in discharge of his duties, obligations and responsibilities and for protection of the assets of the company, appoint an agent to do any business which the Company Liquidator is unable to do himself;

(m)

to take all such actions, steps, or to sign, execute and verify any paper, deed, document, application, petition, affidavit, bond or instrument as may be necessary,—

(i)

for winding up of the company;

(ii)

for distribution of assets;

(iii)

in discharge of his duties and obligations and functions as Company Liquidator; and

(n)

to apply to the Tribunal for such orders or directions as may be necessary for the winding up of the company.

(2)

The exercise of powers by the Company Liquidator under sub-section ( 1 ) shall be subject to the overall control of the Tribunal.

(3)

Notwithstanding the provisions of sub-section ( 1 ), the Company Liquidator shall perform such other duties as the Tribunal may specify in this behalf.

Notes, amendments & references (1)

(ii) any other body corporate (not being a company as defined in this Act), which the Central Government may, by notification, specify in this behalf