July 2023

Fraudulent Preference (1) Where a company has given preference to a person who is one of the creditors of the company or a surety or guarantor for any of the debts or other liabilities of the company, and the company does anything or suffers anything done which has the effect of putting that person into a position which, in the event […]

Preferential payments (1) In a winding up, subject to the provisions of section 326, there shall be paid in priority to all other debts,— (a) all revenues, taxes, cesses and rates due from the company to the Central Government or a State Government or to a local authority at the relevant date, and having become due and payable

Overriding Preferential Payments Provision Explanation Priority Debts In the winding up of a company under the Companies Act, certain debts are given priority. Debts in Priority These priority debts include workmen’s dues and a portion of debts due to secured creditors. Workmen’s Dues Workmen are defined as employees within the meaning of the Industrial Disputes Act, 1947.

Application of Insolvency Rules in Winding Up of Insolvent Companies Omitted] Amendment: 1. (a) Omitted by Insolvency and Bankruptcy Code, 2016 Dated 15th November, 2016. – Original Content (b) The MCA Notification No. F.O. 3453(E) Dated 15th November, 2016, enforcing the related sections of Insolvency and Bankruptcy Code, 2016. Original Omitted Content– 325. (1) In the winding up of

Debts of all descriptions to be admitted to proof In every winding up (subject, in the case of insolvent companies, to the application in accordance with the provisions of this Act or of the law of insolvency), all debts payable on a contingency, and all claims against the company, present or future, certain or contingent,

Costs of Voluntary Winding Up [Omitted] Amendment 1. (a) Omitted by Insolvency and Bankruptcy Code, 2016 Dated 15th November, 2016. Original Content: 323. All costs, charges and expenses properly incurred in the winding up, including the fee of the Company Liquidator, shall, subject to the rights of secured creditors, if any, be payable out of the assets

Power to Apply to Tribunal to Have Questions Determined, etc [Omitted] Amendment 1. (a) Omitted by Insolvency and Bankruptcy Code, 2016 Dated 15th November, 2016. – Original Content (b) The MCA Notification No. F.O. 3453(E) Dated 15th November, 2016, enforcing the related sections of Insolvency and Bankruptcy Code, 2016. Original Omitted Content– 322. (1) The Company Liquidator or any

Arrangement When Binding on Company and Creditors [Omitted] Amendment 1. (a) Omitted by Insolvency and Bankruptcy Code, 2016 Dated 15th November, 2016 – Original Content (b) The MCA Notification No. F.O. 3453(E) Dated 15th November, 2016, enforcing the related sections of Insolvency and Bankruptcy Code, 2016. Original Omitted Content– 321. (1) Any arrangement other than the arrangement referred to

Distribution of Property of Company Omitted] Amendment 1. (a) Omitted by Insolvency and Bankruptcy Code, 2016 Dated 15th November, 2016. – Original Content (b) The MCA Notification No. F.O. 3453(E) Dated 15th November, 2016, enforcing the related sections of Insolvency and Bankruptcy Code, 2016. Original Omitted Content– 320. Subject to the provisions of this Act as to overriding preferential

Power of Company Liquidator to Accept Shares, etc., as Consideration for Sale of Property of Company Omitted] Amendment 1. (a) Omitted by Insolvency and Bankruptcy Code, 2016 Dated 15th November, 2016. – Original Content (b) The MCA Notification No. F.O. 3453(E) Dated 15th November, 2016, enforcing the related sections of Insolvency and Bankruptcy Code, 2016. Original Omitted Content– 319.