Section 518 - Power to apply to Tribunal to have questions determined or powers exercised. - Companies Act, 1956

Power to apply to Tribunal to have questions determined or powers exercised. [1] [518. (1) The liquidator or any contributory or creditor may apply to the Tribunal, ____ (a) to determine any question arising in the winding up of a company; or (b) to exercise, as respects the enforcing of calls, the staying of proceedings or any other matter, all or any of the powers which the Tribunal might exercise if the company were being wound up by the Tribunal. (2) The liquidator or any creditor or contributory may apply to the Tribunal for an order setting aside any attachment, distress or execution put into force against the estate or effects of the company after the commencement of the winding up. (3) The Tribunal, if satisfied on an application under sub-section (1) or sub-section (2) that the determination of the question or the required exercise of power or the order applied for will be just and beneficial, may accede wholly or partially to the application on such terms and conditions as it thinks fit, or may make such other order on the applications as it thinks just. (4) A copy of an order staying the proceedings in the winding up, made by virtue of this section, shall forthwith be forwarded by the company, or otherwise as may be prescribed, to the Registrar, who shall make a minute of the order in his books relating to the company. ------------------------------------------ Notes:- [1] Sections 518 and 519 substituted by the Companies (Second Amendment) Act, 2002, w.e.f. a date yet to be notified. Prior to their substitution, section 518 and 519 reads as under for the following: "518. Power to apply to Court to have questions determined or powers exercised. (1) The liquidator or any contributory or creditor may apply to the Court (a) to determine any question arising in the winding up of a company; or (b) to exercise, as respects the enforcing of calls, the staying of pro ceedings or any other matter, all or any of the powers which the Court might ex ercise if the company were being wound-up by the Court. (2) The liquidator or any creditor or contributory may apply to the Court specified in sub-section (3) for an order setting aside any attachment, distress or execution put into force against the estate or effects of the company after the commencement of the wind ing up. (3) An application under sub-section (2) shall be made ____ (a) if the attachment, distress or execution is levied or put into force by a High Court to such High Court; and (b) if the attachment, distress or execution is levied or put into force by any other Court, to the Court having jurisdiction to wind-up the company. (4) The Court, if satisfied on an application under sub-section (1) or (2) that the determination of the question or the required exercise of power or the order applied for will be just and beneficial, may accede wholly or partially to the applica tion on such terms and conditions as it thinks fit, or may make such other order on the application as it thinks just. (5) A copy of an order staying the proceedings in the winding up, made by virtue of this section, shall forthwith be forwarded by the company, or otherwise as may be prescribed, to the Registrar, who shall make a minute of the order in his books relating to the company. 519. Application of liquidator to Court for public examination of promoters, directors, etc. (1) The liquidator may make a report to the Court stating that in his opinion a fraud has been committed by any person in the promotion or formation of the company or by any officer of the company in relation to the company since its formation; and the Court may, after considering the report, direct that that person or officer shall attend before the Court on a day appointed by it for that purpose, and be publicly examined as to the promotion or formation or the conduct of the business of the company, or as to his conduct and dealings as officer thereof. (2) The provisions of sub-sections (2) to (11) of section 478 shall apply in relation to any examination directed under sub-section (1) as they apply in relation to an examination directed under sub-section (1) of section 478 with references to the liquidator being substituted for references to the Official Liquidator in those provisions."