Section 279 of Companies Act, 2013 – Stay of suits, etc., on winding up order

SECTION 279. STAY OF SUITS, ETC., ON WINDING UP ORDER

[Effective from 15th December, 2016]

(1) When a winding up order has been passed or a provisional liquidator has been appointed, no suit or other legal proceeding shall be commenced, or if pending at the date of the winding up order, shall be proceeded with, by or against the company, except with the leave of the Tribunal and subject to such terms as the Tribunal may impose:

Provided that any application to the Tribunal seeking leave under this section shall be disposed of by the Tribunal within sixty days.

(2) Nothing in sub-section (1) shall apply to any proceeding pending in appeal before the Supreme Court or a High Court.

Applicable Rules

Companies (Winding Up) Rules, 2020

[Effective from 1st April, 2020]

APPLICATION FOR STAY OF SUITS ETC. ON WINDING UP ORDER

Rule 24. Application for leave to commence or continue suit or proceeding.—An application under sub-section (1) of section 279 for leave of the Tribunal to commence or continue any suit or other legal proceeding by or against the company shall be made in Form WIN 15 upon notice to the Company Liquidator and the parties to the suit or proceeding sought to be commenced or continued.