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Section 370 Of Companies Act 2013: Continuation Of Pending Legal Proceedings

Corporate Law (Country: India)

SECTION-370 (Continuation of pending legal proceedings) under CHAPTER-XXI (PART I.— Companies Authorised to Register under this Act) of the Companies Act, 2013


All suits and other legal proceedings taken by or against the company, or any public officer or member thereof, which are pending at the time of the registration of a company in pursuance of this Part, may be continued in the same manner as if the registration had not taken place:
Provided that execution shall not issue against the property or persons of any individual member of the company on any decree or order obtained in any such suit or proceeding; but, in the event of the property of the company being insufficient to satisfy the decree or order, an order may be obtained for winding up the company in accordance with the provisions of this Act or of the Insolvency and Bankruptcy Code, 2016.








Extra Notes for Readers

(1) The Companies Act, 2013 received the assent of the President on the 29th August, 2013 (Published in the Gazette of India, Extraordinary, Part II - Section 1 by Ministry of Law and Justice, Legislative Department on 30th August, 2013) - link

(2) Section 370 (except the proviso) of the Companies Act 2013 was notified by MCA Notification S.O. 902(E) dated 26th March 2014 (w.e.f. 1st April 2014) - link


(3) Proviso to Section 370 of the Companies Act 2013 was notified by MCA Notification S.O. 3677(E) dated 7th December 2016 (w.e.f. 15th December 2016) - link

(4) Also refer  the Companies (Authorised to Registered) Rules, 2014 (w.e.f. 1st April 2014) link

Note: Please check MCA site for any further amendments to the Companies (Authorised to Registered) Rules, 2014.
(5) Proviso to Section 370 of the Companies Act 2013 was modified in accordance with the section 255 of the Insolvency and Bankruptcy Code, 2016 as under - link
In section 370, in the proviso, after the words "obtained for the winding up the company", the words "in accordance with the provisions of this Act or of the Insolvency and Bankruptcy Code, 2016" shall be inserted.

MCA has notified section 255 of the Insolvency and Bankruptcy Code, 2016 vide notification no. S.O. 3453(E) dated 15th November 2016 (w.e.f. 15th November 2016) - link






This page was last updated on 29th May, 2017.

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