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Section 361 of Companies Act 2013: Summary procedure for liquidation

SECTION-361 (Summary procedure for liquidation) PART IV.—Official Liquidators under CHAPTER-XX (Winding Up) of the Companies Act, 2013

(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.

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 361 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) The Central Government has delegated the powers and functions vested in it under Section 361 to the Regional Directors vide MCA Notification S.O. 4090 (E) dated 19th December, 2016.

This page was created/last updated on 28th May, 2017.

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