Section 231 of Companies Act, 2013 – Power of Tribunal to enforce compromise or arrangement

SECTION 231. POWER OF TRIBUNAL TO ENFORCE
COMPROMISE OR ARRANGEMENT

[Effective from 15th December, 2016]

(1) Where the [1][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 [1]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.

[1] For Government Companies for the word “Tribunal”, wherever it occurs, ‘Central Government’ shall be substituted vide Notification F. No. 1/2/2014-CL-V dated 13th June 2017