Rule 183-186 & Rule 188 of the Companies (Winding Up) Rules, 2020
Part IV of the Companies (Winding Up) Rules, 2020 deals with Costs Etc. Rule 183-188 of the winding up rules are applicable to Section 298. There are certain Rules of the Companies (Winding Up) Rules, 2020, Published vide Notification No. G.S.R. 46(E), dated 24.01.2020 that are read with Section 298. Section 298 of the Companies Act, 2013 deals with the power to order costs. In the occasion of the assets of a company being insufficient to satisfy its liabilities, the Tribunal may make an order for the payment that has to be done out of the assets, of the costs, charges and expenses incurred in the winding up, in the mentioned order of priority inter se as the Tribunal thinks just and proper.
Rule 183 of the Companies (Winding Up) Rules, 2020, states that the costs shall be in the discretion of the Tribunal and no costs of or incidental to a proceeding shall be allowed between party and party unless the same are expressly awarded by an order of the Tribunal.
Rule 184 of the Companies (Winding Up) Rules, 2020, further states that every authorized representative accountant auctioneer or other person employed by the Company Liquidator in a winding up by the Tribunal shall on request by the Company Liquidator (to be made in sufficient time before the declaration of a dividend) deliver his bill of costs or charges to the Company Liquidator and if he fails to do so within four weeks of the receipt of the request or such extended time as the Tribunal may allow the Company Liquidator shall declare and distribute the dividend without regard to such person's claim and the claim shall be forfeited :
Provided that the Tribunal may at any time before the declaration of the final dividend for good cause shown restore the claim and order the bill to be received without prejudice to the distribution of dividends declared prior to the making of the order and the request by the Company Liquidator shall be in Form WIN 95 and shall be served personally or by registered post or speed post.
Rule 185 of the Companies (Winding Up) Rules, 2020, states that in a proceeding against the persons referred to in sections 339 or 340, the fees to authorised representatives shall be allowed as decided by the Tribunal having regard to the nature and complexity of the case.
Rule 186 of the Companies (Winding Up) Rules, 2020, further deals with the fees of the proceeding when it is compromised that where a proceeding is compromised prior to its being set down for hearing the fees to be allowed to authorised representatives of the parties shall be as decided by the Tribunal having regard to the nature and complexity of the case.
Rule 188 of the Companies (Winding Up) Rules, 2020, deals with the Tribunal's power to fix a fee:
(1) Nothing in these rules shall be deemed to prevent the Tribunal from fixing a fee for any matter if in any particular case the Tribunal considers it necessary to do so in the interest of justice.
(2) In any case where the contest has not been of a substantial nature the Tribunal may direct that the costs shall be on the uncontested scale.