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Sec 231 Companies Act 2013: Tribunal Power (enforce Compromise/Arrangement)

SECTION-231 (Power of Tribunal to enforce compromise or arrangement) under CHAPTER-XV (Compromises, Arrangements and Amalgamations) of the Companies Act, 2013

(1) Where the Tribunal makes an order under section 230 sanctioning a compromise or an arrangement in respect of a company, it—
(a) shall have power to supervise the implementation of the compromise or arrangement; and 

(b) may, at the time of making such order or at any time thereafter, give such directions in regard to any matter or make such modifications in the compromise or arrangement as it may consider necessary for the proper implementation of the compromise or arrangement.
(2) If the Tribunal is satisfied that the compromise or arrangement sanctioned under section 230 cannot be implemented satisfactorily with or without modifications, and the company is unable to pay its debts as per the scheme, it may make an order for winding up the company and such an order shall be deemed to be an order made under section 273.

(3) The provisions of this section shall, so far as may be, also apply to a company in respect of which an order has been made before the commencement of this Act sanctioning a compromise or an arrangement.

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)

(2) Section 231 of the Companies Act 2013 was notified by MCA Notification S.O. 3677(E) dated 7th December 2016 (w.e.f. 15th December 2016)

(3) Also refer the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016 (w.e.f. 15th December, 2016)

[Do check for any further amendments to the Companies (Compromises, Arrangements and Amalgamations) Rules, 2016]

(4) Exemption to "Government Companies" —

MCA Notification G.S.R. 582(E) dated 13th June 2017

~ In section 231: For the word “Tribunal”, wherever it occurs, the words “Central Government” shall be substituted.”.

This page was last updated on 14th June, 2017.

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