Powers of Tribunal (Section 273, Companies Act 2013)
Updated: Oct 4
This article talks about the powers vested within the tribunal and what all can the tribunal is entitled to do under these powers which are also laid down under Section 273 of the Companies Act, 2013.
Background of section
Under Section 273 of the Companies Act 2013, the Company Law Tribunal after getting a petition for winding up can pass the accompanying orders:
1) It can dismiss the petition with or without cost.
2) It can make interim orders.
3) It can appoint a provisional liquidator of the Company till giving an order for Winding-up.
4) Make an order for winding up.
5) Can pass any other order as it thinks fit.
Further, such a request must be made within a time of ninety days from the date of the show of such petition. The Act likewise enables the Tribunal to offer the Company a sensible chance before designating a provisional liquidator, the court needs to pull out to the organization to give them a potential chance to make its representation.
It is to be noticed that the Tribunal will not decline to cause a request for winding up just on the ground that the resources or assets of the Company have been sold for a sum equivalent to or more than those assets, or that Company has no assets.
The Tribunal doesn't haphazardly arrange liquidation when a request is documented on the ground of just and equitable. All things considered, it investigates different solutions accessible to the petitioners rather than only looking for an outlandish help to the winding-up of the Company.
The Tribunal and the Appellate Tribunal are bound by the rules laid down in the Code of Civil Procedure and are guided by the principles of natural justice, subject to the other provisions of this Act and of any rules that are made by the Central Government. The Tribunal and the Appellate Tribunal have the power to control their procedure. Further, no civil court has the jurisdiction to consider any suit or proceeding concerning any matter which the Tribunal or the Appellate Tribunal is empowered to decide.
According to Section 273(1c) of the Companies Act 2013, the 'Court' has the imperative ability to pass interim orders, even against an outsider or stranger to the procedures, to save the property of the organization. The Tribunal also has fundamental abilities to designate 'Provisional Liquidator' which will likewise essentially influences the 'rights' and interests of various people who may not be parties to the winding-up procedures.
The 'Court' has an inborn ability to pass an 'interim order(s)', which is simple and important to prevent maltreatment of the cycle of the process of the 'Tribunal' or to advance the reason for Justice or to pass orders, which are essential to meet the criteria of justice. The words, "occurring" in Section 273(1)(e) of the Companies Act, 2013, "any other order as it thinks fit "implies that the Tribunal in 'winding up petition' has wide abilities to pass vital orders.